A payday loan company charges a $40 fee for a $600 payday loan that will be repaid in 17 days. Treating the fee as interest paid, what is the equivalent annual interest rate? Round your answer to two decimal places as needed 143.1 % interest Submit Question
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The interest rate is the fee divided by the loan amount, which is $40/$600 = 0.06667 or 6.67%. Show more…
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