SOLUTION: 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 payd
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: 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 payd
Log On
Question 180461: 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. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! A typical $100 loan is payable in TWO WEEKS at $115. What is the percent interest paid on this loan?
----------------------------------------
I = Prt
15 = 100*r*(2/52)
0.15 = r(1/26)
r = 3.9 or 390%
======================
Cheers,
Stan H.