Ask Question
17 October, 18:12

Taylor Whitney it's a word problem A payday loan company charges a $25 fee for a $700 payday loan that will be repaid in 12 days. Treating the fee as interest paid, what is the equivalent annual interest rate.

+4
Answers (1)
  1. 17 October, 20:54
    0
    Step-by-step explanation:

    Using I = (PRt) / 100

    Ratio of fee and principal amount = fee/amount

    = 25/700

    = 1/28

    Fee (interest) for 12 days = $25

    In 1 day,

    = (1/28) * 1/12

    = 1/336

    For a year, that is 365 days

    Fee (interest) = 365 * (1/336)

    = 1.08 * 100

    = 108 %
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Taylor Whitney it's a word problem A payday loan company charges a $25 fee for a $700 payday loan that will be repaid in 12 days. Treating ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers