Payday loans are a commonly-used source of financing for lower-income individuals. A payday loan allows a person who is in need of cash to take an advance from one of their future paychecks (i.e. the lender gives you a $100 today and you pay them back once you are paid next). In exchange for this service, the payday lender charges a "financing fee" that the borrower is meant to pay when the loan is due (usually two weeks in the future). Typically, these fees are about $15.00 per every $100.00 borrowed (this is a 15.00% interest rate per two week period) and "rollovers" are common (i.e. taking out a new payday loan to pay off an old one). Determine what the effective annual return on a payday loan would be assuming 15.00% interest rate due every two weeks. 390.00% 3,685.68% 435.03% 180.00%