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A payday loan is structured to obscure the true interest rate you are paying. Forexample, inWashington, you pay a $ 26 $26 fee for atwo-week

A payday loan is structured to obscure the true interest rate you are paying. Forexample, inWashington, you pay a $ 26

$26 "fee" for atwo-week $ 200

$200 payday loan(when you repay theloan, you pay $ 226

$226). What is the effective annual interest rate for thisloan?(Assume 26bi-weekly periods peryear.)

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