214 Unit 3 Managing Your Money Applications Name Some of the most common (and most dangerous) examples of simple interest are shon-term payday loans, which some lenders also call "cash advances." (This is not to be confused with a cash advance on a credit card.) Let's say that you're going to gert in sen days, and you need some cash for a car repair now. A payday lender might lend you $350 mow, and you' ll be asked so pay them back whee your paychock comes. Of coune, you'll have to pay interest. The median fee chargod by these types of eaders is $15 per every $100 borrowed 1. How much would you have to pay back in ten days? 2. What is the percent interest you're charged? 3. What portion of a year is the ten-day period for this loan? Write your answer as both a fraction, and a decimal. 4. As you know, one month is in2 of a year. Ifyou paid 2% simple interest in one meth on a loan, what percentage would you pay in a full year? S. In order to find the annual interest rale, you'll noed to find rate as a percent per year and 3 to find the annual interest rate for this loan Discuss how good or bad of a deal you're getting as the borrower. You can use your calculation from Question 4 as a guide