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please explain I dont understand at all
A payday loan company charges a $35 fee for a $650 payday loan that will be repaid in 18 days. Treating the fee as interest p
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Answer #1

Interest Rate for 18 days = Interest charge / Loan amount = 35/650 * 100% = 5.385%

Number of days in an year = 365

Number of compounding periods = 365/18

Annual Interest Rate = ( 1 + 0.05385)365/18 - 1 = 1.8967 or 189.67%

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