Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A payday loan company charges a $ 6 5 fee for a $ 5 5 0 payday loan that will be repaid in 1 4

A payday loan company charges a $65 fee for a $550 payday loan that will be repaid in 14 days.
Treating the fee as interest paid, what is the equivalent annual interest rate?
Assume bankers rules of 360 days in a year.
Round your result to the nearest whole percent. This may be over 100%
% annual interest rate
Question Help:
Video
Message instructor
Post to forum
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statisitcs

Authors: Barry Monk

2nd edition

1259345297, 978-0077836351, 77836359, 978-1259295911, 1259295915, 978-1259292484, 1259292487, 978-1259345296

More Books

Students also viewed these Mathematics questions

Question

How can the improvement process be managed?

Answered: 1 week ago

Question

How does cluster analysis help you easily identify those outliers?

Answered: 1 week ago