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A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $35 fee for a

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $35 "fee" for a two-week $195 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? Assume 26 bi-weekly periods per year.

(Note:

Round your calculation of the the two-week interest rate to at least five decimal places.)

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Part 1

The effective annual interest rate is:

(Round to two decimal places.)

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