While in the car listening to the radio, I sometimes hear advertisements from Cash Money offering their famous $300 for $20 payday loan. With this loan, you can borrow $300 if you pay back the same $300 PLUS a flat fee of $20 once you get your next pay cheque. For the sake of argument, lets assume that anyone using this service is paid bi-weekly and obtains the loan as far away from their next pay cheque as possible. a) What is the (approximate) compounding period for this loan and the effective interest rate for that period? [2] b) What is the effective annual interest rate for this payday loan?