Question

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

Answer 1

The answer I got is 150%
90/15= $6
6*365= $ 2191.5
2191.5 / 1460 * 100=150%

Answer 2

The answer is 150%

Explanation:

Amount of pay day loan = $1460

Also given is that the payday loan for $1460 due in 15 days that charges a $90 fee.

Per day it will charge =
`(90)/(15)=6` dollars

For a year it will charge =
`365*6=2190`

Thus for the due amount of $1460, it will be charged on a rate of =

`(2190)/(1460) *100` = 150%

Therefore, the APR is 150%.