SOLUTION: A payday loan company charges a $95 fee for a $350 payday loan that will be repaid in 19 days. Treating the fee as interest paid, what is the equivalent annual interest rate?

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Question 1148366: A payday loan company charges a $95 fee for a $350 payday loan that will be repaid in 19 days.
Treating the fee as interest paid, what is the equivalent annual interest rate?

Answer by math_helper(2461)   (Show Source): You can put this solution on YOUR website!
(365/19) * (95/350) = 5.21, or

Clearly a good reason to avoid using payday loans.

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