Question

which will have a higher effective interest rate, a payday loan for $2100 due in 13 days with a fee of $110 or a payday loan for $2100 due in 11 days with a fee of $110

Answer 1

a payday loan for $2100 due in 11 days with a fee of $110

is the correct answer. The payday loan for 2100 that is due in 11 days will have a higher effective interest rate because the duration of the loan is shorter when compared to the other loan.