Question

A payday loan is made for four weeks, where the amount of interest owed per $100

borrowed is $10
. If you borrow $800
for four weeks, how much do you owe at the end of the four weeks?

Answer 1

If the interest owed per $100 borrowed is $10, then the interest rate is 10%. If you borrow $800, you will owe 10% of $800, which is $80 in interest. Therefore, at the end of the four weeks, you will owe $800 + $80 = $880.