A payday loan company charges $95 fee for a $350 payday loan that will be repaid in 13 days. Treating the fee as interest paid, what is the equivalent annual interest rate? % interest round to the nearest percent. This will be over 100%

A payday loan company charges $95 fee for a $350 payday loan that will be repaid in 13 days. Treating the fee as interest paid, what is the equivalent annual interest rate? % interest round to the nearest percent. This will be over 100%

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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A payday loan company charges $95 fee for a $350 payday loan that will be repaid in 13 days. Treating the fee as interest paid, what is the equivalent annual interest rate?
% interest round to the nearest percent. This will be over 100%

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