SOLUTION: A payday loan company charges a $65 fee for a $700 payday loan that will be repaid in 10 days. Treating the fee as interest paid, what is the equivalent annual interest rate?

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Question 1205791: A payday loan company charges a $65 fee for a $700 payday loan that will be repaid in 10 days.
Treating the fee as interest paid, what is the equivalent annual interest rate?
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

65%2F700+=13%2F140+=9.3% interest for ten days

depending on your rules a year could be 365 or 360 days

then, there is 365%2F10=36.5 ten day periods in a year, the interest rate equals

36.5%2A9.3=339.45%
or
360%2F10=36 ten day periods in a year, the interest rate equals

36%2A9.3=334.8%