SOLUTION: A payday loan company charges a $50 fee for a $650 payday loan that will be repaid in 12 days. What is the equivalent annual interest rate
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Question 1146624: A payday loan company charges a $50 fee for a $650 payday loan that will be repaid in 12 days. What is the equivalent annual interest rate
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
A payday loan company charges a $50 fee for a $650 payday loan that will be repaid in 12 days.
What is the equivalent annual interest rate?
:
* 50 = $1520.83 per year
:
r * 650 = 1520.83
r = 1520.83/650 * 100
r = 234% is annual interest
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