Question

A payday loan store charges $35 for a one-month loan of $700. What annual interest rate is this equivalent to?

%

Answer 1

SOOO you got a loan wich means you recieved 700 dollars. u pay 35 dollars each month...

so basically 35*12 wouuld be what u would pay for a year

so 420 dollars is for one year- and yet u got a 700 dolllar loan so u actually are only paying 420 dollars which is 280 interest

Explanation:

Answer 2

60%

Explanation:

The monthly rate is:

35/700 = 0.05

There are 12 months in a year, so the annual rate is:

12 × 0.05 = 0.6

The annual interest rate is 60%.