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17 September, 02:35

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

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Answers (2)
  1. 17 September, 02:37
    0
    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 %

    Answer (A)
  2. 17 September, 03:01
    0
    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%
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