Question

A payday loan is made for 5 weeks where the amount of interest owed per $100 borrowed is $10. if you borrow $400 for 5 weeks how much do you owe at the end of 5 weeks

Answer 1

As the interest owed per $100 is $10, then, for $400 would be:

`(x)/(400)=(10)/(100)`

`x=(10)/(100)\cdot400`

`x=40`

Then, at the end of the 5 weeks you will owe the borrowed quantity plus the interest.

`400+40=440`

Answer: $440