Jim tree borrowed $1,000 at 10 percent for one year. he paid a $45 processing fee and $100 in interest. he calculated the apr to the nearest tenth. what was the apr? 8.7 9.6 10.6 14.5

The annual percentage rate would be 10.6 in this case!

For example, if your loan has an APR of 10 percent, you would pay $100 per $1000 that you borrow each year. All other things being equal, the loan with the lowest APR is typically least expensive—but it’s usually more complicated than that.