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The APR is the actual yearly interest rate paid by a borrower, figuring in the points charged to initiate the loan and other costs.
Now, applying Newton-Raphson Method, we get an APR (A) =0.0605*1200=72.60%
From the above calculation, we see that for a loan amount of $100 with 12% interest, the APR can be as high as 72.60%, depending upon the extra costs and the time taken for repayment.