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Compound Frequency Payday loans are very short-term loans that charge very high interest rates. You can borrow $2,200 today and repay $2,552 in two weeks.

Compound Frequency Payday loans are very short-term loans that charge very high interest rates. You can borrow $2,200 today and repay $2,552 in two weeks. What is the compound annual rate implied by this 16 percent rate charged for only two weeks?

4,641.41%

17.25%

19.20%

16.20%

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