Mike morgan has a $83,098.59 loan. he paid $1,000 in fees and $4,900 in total interest the first year. if the apr is the finance charge (interest plus fees) for one year ÷ amount financed, what was the apr for that year?

APR would be 0.071.

Step-by-step explanation:

Given formula,

Here,

Paid fees for a year = $ 1,000,

Total interest for the year = $ 4,900,

⇒ Finance charge =  $ 1,000 + $ 4,900 = $ 5,900,

Also, the financed amount of the loan =   $ 83,098.59,

Hence, the APR charged for the year