Question 1174311
A payday loan company charges a $80 fee for a $550 payday loan that will be repaid in 11 days.
Treating the fee as interest paid, what is the equivalent annual interest rate?
% interest Round to the nearest percent. This will be over 100%
:
{{{365/11}}} * 80 = $2654.55 annual interest
:
Interest = principal * rate
2654.55 = 550 * r
r = {{{2654.55/550}}} * 100 
r = 483% annual interest rate. What a rip-off!!