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You know that for a 'payday loan' finance charge may be computed by: Finance charge = N o m i n a l r a

You know that for a 'payday loan' finance charge may be computed by:
Finance charge =NominalrateNumberofbillingperiodsperyearx account balance owed
Nonetheless, you borrow $500 for 14 days, and commit yourself to paying back $554.99 in two weeks. (Note: year =365 days). What is the nominal rate of such a loan?
a.286.73%
b.386.73%
c.486.73%
d.586.73%
NOTE: Rounding or approximation up to 1 to 2% is allowed.
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