document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=180461>Question 180461</A>: <I><SPAN STYLE=\"word-break: break-all;\"> limits are needed on payday-lending businesses, according to an article in the Feb. 14, 2007 issue of the Columbian.  Interest rates on payday loans are so outrageous that the payday-lending industry only has itself to blame for states moving to rein them in.  A typical $100 loan is payable in TWO WEEKS at $115.  What is the percent interest paid on this loan? Do not round the denominator before dividing. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #135235 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=135235\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A typical $100 loan is payable in TWO WEEKS at $115. What is the percent interest paid on this loan? <BR>\n" );
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document.write( "I = Prt<BR>\n" );
document.write( "15 = 100*r*(2/52)\r<BR>\n" );
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document.write( "0.15 = r(1/26)<BR>\n" );
document.write( "r = 3.9 or 390%<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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