365 Commission website has a short video on the situation https://www.consumer foto/media/video-0078-payday-lending (follow the link or poste in a browser - you may also proceed without watching the video) When calculating the APR for such a payday loan, the simple interest formula is used: /P.r. with the APR as a decimal and the time in years Since payday loan initial terms are not lasting a full year, use the quotient to of days of loan Note: If you turn am quotients into decimals and don't keep them as fractions), keep many decimal places in the version you use in your step. If you round too much, your answer will be oll Note: Find video links that explain examples of this type of problem on the next page. Watch these videos before you start on your solutions for the two problems below. 3a) Jane borrowed 500 and paid $525 in total fees on the loan for a sum of $1025 after rolling over the loan 6 times (after the initial 14 days were up) for 7 fourteen day periods. After these 98 days she finally had saved up enough to pay her loan back. Calculate the APR on this $500 loan using $525 as the interest (since the fee is for the use of the money, interpreting it as the interest makes sense) and 98 days for the number of days of the loan. Solving the simple interest equation for r, calculate the APR rounded to the closest full percent. (Turn the APR into a percent and round to the closest integer) 3b) Online payday lenders do not always follow the rules. Sam took out an online loan where he had to give the lender access to withdraw money from his bank account. The fee agreed upon was $90 for a $350 loan for 21 days. But the company did not withdraw the entire $350 all at once, but instead $50 at a time over the last few days of the loan term and charged 590 in fees during each withdrawal. Since they did this 7 times the fees mounted to $630. Interpreting the fee total as interest and solving the simple interest equation for r, calculate the APR rounded to the closest full percent. (Turn the APR into a percent and round to the closest integer.) -- page 5 of 6