Question
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $28 fee for a
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $28 "fee" for a two-week $210 payday loan (when you repay the loan, you pay $238). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.)
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
