137k views
3 votes
What is the APR of a payday loan for $1460 due in 15 days that charges a $90 fee?

User Nayn
by
7.8k points

1 Answer

5 votes
Charge per day = $90 / 15 = $ 6
Charge per year = $ 6 * 365 1/4 ( If the year contains 365 1/4 days)
= $ 2191.5
As a percentage = 2191.5 / 1460 * 100 = 150 %
So the answer should be 150%
User Offchan
by
6.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.