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Suppose someone needed to borrow $1,500. What would be the difference in the repayment amount if they borrowed the money through a payday loan versus
Suppose someone needed to borrow $1,500. What would be the difference in the repayment amount if they borrowed the money through a payday loan versus a credit card cash advance? (Assume a 3% origination fee, interest charges start immediately, and an 18% APR, compounded continuously.) What if the amount were $500 or $4,500? Does the difference get smaller or larger?
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