Jim tree borrowed $1,000 at 10 percent for one year. he paid a $45 processing fee and $100 in interest. thus, the finance charge is $145, the interest plus the application fee. what is the apr for this loan? apr (to the nearest tenth) = 1.4 1.5 13.7 14.5

The answer is 14.5%.

Step-by-step explanation:

Jim Tree borrowed $1,000 at 10 percent for one year.

He paid a $45 processing fee and $100 in interest making a total of $145.

We have to find the APR for this loan.

APR can be found by :

APR = Finance charge/Amount borrowed

APR = =0.145

And multiply by 100 to get percentage.

%

Therefore, the answer is 14.5%.