Answer:
Step-by-step explanation:
Using I = (PRt)/100
Ratio of fee and principal amount = fee/amount
= 25/700
= 1/28
Fee(interest) for 12 days = $25
In 1 day,
= (1/28) * 1/12
= 1/336
For a year, that is 365 days
Fee (interest) = 365 * (1/336)
= 1.08 * 100
= 108 %
