SOLUTION: A payday loan store charges $50 for a one month loan of $500. What annual interest rate is this equivalent to?

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Question 1110372: A payday loan store charges $50 for a one month loan of $500. What annual interest rate is this equivalent to?
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
A payday loan store charges $50 for a one month loan of $500. What annual interest rate is this equivalent to?
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50/500 = 10% per month = 120% per year
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Loan sharking (usury) was a crime, until the republicans took office.