Q1.

Marina had an accident with her car and the repair bill came to $900. She didnt have any emergency fund money and no extra money in her monthly budget, so she ended up borrowing from a pay-day loan company. As long as she can pay the loan back at the end of the 30 day period she wont be charged any interest, technically. However, she did have to pay an $18 processing fee per $100 that she borrowed.

If she were to consider the processing fee to represent interest paid in her formula, what would she discover to be the annual interest rate she was charged on her short term loan?

Q2.

The end of the month has arrived and Marina was only able to save up $175 to pay off her pay-day loan of $900. This means she will have to delay payment on the remaining $725 until next month. Besides the delayed payment fee that she is charged, she will now have to pay interest on the remaining amount. The APR (annual percentage rate) is 47%, but the interest is compounded daily.

What is the effective interest rate that Marina will actually be paying?

Q3.

It took her 9 more months but Marina has managed to save the full $725 plus more to cover fees to pay off the pay-day loan company. However, she forgot to account for the interest that had been compounding over time. Consider it is now 275 days later, the remaining loan was $725 and the APR is 47% compounded daily.

What is the total amount that Marina must now pay in order to pay off her the loan, accounting for interest?

What is the total amount of interest paid (not including fees)?

*************************************** I have answers for question 1 and 2. I just need 3. But I sent them here I thought they are kind of related to each other, thanks