In early 2013, typical terms on a payday loan involved a $15 charge for a two-week payday

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In early 2013, typical terms on a payday loan involved a $15 charge for a two-week payday loan of $100. Assuming there are twenty-six 14-day periods in a year, what is the effective annual rate on such a loan?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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Question Posted: Oct 31, 2014 07:25 AM

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In early 2013, typical terms on a payday loan involved a $15 charge for a two-week payday

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Financial Management Principles and Applications

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