Answer: 13.54%
Step-by-step explanation:
We compute the annual percentage rate (APR) using the formula:
APR=[(loanfee+interest)/Principaln×365]×100
Where n is the number of days in the loan repayment term.
In our question, we have:
r = 0.13n=4×365=1,460 days.
Therefore:APR=[(210+9,775×0.13)/9,7751,460×365]×100=13.54%
