What is the approximate cost of credit using the APR

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Reference no: EM13889417

Simpson Conglomerates borrows $12,000 for a short-term purpose. The loan will be repaid after 120 days, with Simpson paying a total of $12,400. What is the approximate cost of credit using the APR, or annual percentage rate, calculation?

a. 11.75%

b. 10.00%

c. 3.33%

d. 4.00%

Reference no: EM13889417

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