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
7.4k 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
7.7k 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
8.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.0m questions

11.6m answers

Other Questions

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
Write words to match the expression. 24- ( 6+3)
Link Copied!