Do you think there should be interest rate caps on payday loans or not? Defend your answer.

Determine the interest that would be charged on a two-week $300 payday loan if the interest rate is 520%, and the interest is compounded at the end of the two weeks. Explain how you came to your answer.

Suppose a friend or family asked you how it could be possible that an annual interest rate is higher than 100%. Write out an explanation of what you might say to them.