QuestionJune 25, 2025

A payday loan company charges a 65 fee for a 700 payday loan that will be repaid in 11 days. Treating the fee as interest paid , what is the equivalent annual interest rate? Round your final result to the nearest whole percent. This will be over 100% square % % annual interest rate

A payday loan company charges a 65 fee for a 700 payday loan that will be repaid in 11 days. Treating the fee as interest paid , what is the equivalent annual interest rate? Round your final result to the nearest whole percent. This will be over 100% square % % annual interest rate
A payday loan company charges a 65 fee for a 700
payday loan that will be repaid in 11 days.
Treating the fee as interest paid , what is the
equivalent annual interest rate?
Round your final result to the nearest whole percent.
This will be over 100% 
square %  % annual interest rate

Solution
4.5(141 votes)

Answer

296\% Explanation 1. Calculate the daily interest rate The fee is 65 for 11 days on a 700 loan. Daily interest rate = \frac{65}{700 \times 11}. 2. Convert to annual interest rate Multiply the daily interest rate by 365 to convert it to an annual rate: Annual interest rate = \frac{65}{700 \times 11} \times 365. 3. Convert to percentage Multiply the annual interest rate by 100 to get the percentage.

Explanation

1. Calculate the daily interest rate<br /> The fee is $65$ for $11$ days on a $700$ loan. Daily interest rate = $\frac{65}{700 \times 11}$.<br />2. Convert to annual interest rate<br /> Multiply the daily interest rate by $365$ to convert it to an annual rate: Annual interest rate = $\frac{65}{700 \times 11} \times 365$.<br />3. Convert to percentage<br /> Multiply the annual interest rate by $100$ to get the percentage.
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