120k views
4 votes
What is the APR of a payday loan for $1100 due in 5 days that charges a $165 fee?

A. 1095%


B. 109.5%


C. 10.95%


D. 10,950%

User Stabbz
by
7.9k points

1 Answer

2 votes
$165 divided by 1,100= .15
Times that by 365 for each day of the year
Which will equal 54.75 divided that by 5 for the amount of days that the loan was for which equals 10.95, then times that by 100 which equals 1,095
User Alejandro Carnero
by
8.4k points