<PRE><B>Question 1121810</B>
the loan is 500 dollars and has to be paid back in 14 days.
the fee is 25 dollars.


if this is a simple interest loan, then the interest rate would be calculated using the following formula.


25 = 500 * r * n


25 is the interest
500 is the principal
r is the interest rate per day.
n is the number of days.


since n = 14, the formula becomes 25 = 500 * r * 14.


solve for r to get r = 25 / 500 / 14 = .0035714286 per day.


if there are 365 days in a year, then the interest rate for the whole year would be .0035714286 * 365 = 1.203571429, or 120.36% rounded to 2 decimal places.


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