SOLUTION: A payday loan company charges a $90 fee for a $400 payday loan that will be repaid in 16 days.
Treating the fee as interest paid, what is the equivalent annual interest rate?
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Question 1146643: A payday loan company charges a $90 fee for a $400 payday loan that will be repaid in 16 days.
Treating the fee as interest paid, what is the equivalent annual interest rate?
Found 2 solutions by josmiceli, richwmiller:
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The fee per day its:
dollars/day
This is dollars/yr
The annual interest rate would be
513.28 % annual rate
--------------------------
definitely get another opinion.
check the math, too
Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
Now you should be wise enough never to go for a payday loan.
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