Question

You go to a icash, a payday loan company for a $400 loan and 14days later repay $460.(the maximum allowable rate in BC is 15% of the principal so that is what the charge). What simple annual intrest rate were you charged? <br />Please help me <br />No spaming plz ​

Answer 1

Answer:

You paid 60$ as interest for 14 days on the principal amount of 400$. You have paid monthly interest of 128.4$(4.28${a day}*30{days}).

This equates to an interest of 1,540.8$ per annum.

On the principal of $400 you have paid annual interest of $1,540.8 which is 385.2% INTEREST RATE.

IF the interest rate would have been 15% you would pay interest of 60$ per annum which is 5$ a month.

I hope I am successfull in making you understand.

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