Register
You are due a $750 paycheck at the end of the week (Friday), but want to get your hands on the cash on Monday. A payday lender offers to make this deal with you for a fee of 2% of the paycheck. What is
168k views
2 votes
You are due a $750 paycheck at the end of the week (Friday), but want to get your hands on the cash on Monday. A payday lender offers to make this deal with you for a fee of 2% of the paycheck. What is the rate you are paying for this service? Assume a 365-day year.

User Lbrazier
by
7.0k points

2 Answers

5 votes
Let R = rate, B = base and P = percentage

Use R = P/B

R = 0.02/750

Can you finish?

User Desire Kaleba
by
7.1k points
4 votes
Assuming this is a simple discount note with a face value of $750, the interest that will be deducted is 2%*$750 = $15. Then the proceeds are $750 -15 = $735, and the effective annual rate is
.. 15/(735*(4/365)) ≈ 186.2%
User Matthew Darnell
by
8.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

8.3m questions

10.9m answers

Other Questions

How do you can you solve this problem 37 + y = 87; y =
What is .725 as a fraction
How do you estimate of 4 5/8 X 1/3
A bathtub is being filled with water. After 3 minutes 4/5 of the tub is full. Assuming the rate is constant, how much longer will it take to fill the tub?
i have a field 60m long and 110 wide going to be paved i ordered 660000000cm cubed of cement  how thick must the cement be to cover field
Link Copied!