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jasenka [17]
3 years ago
7

Which will have a higher effective interest rate — a payday loan for $1900 that is due in 14 days with a fee of $80, or a payday

loan for $1900 that is due in 12 days with a fee of $80?
A. A payday loan for $1900 that is due in 12 days with a fee of $80, since it has the longer period

B. A payday loan for $1900 that is due in 14 days with a fee of $80, since it has the shorter period

C. A payday loan for $1900 that is due in 14 days with a fee of $80, since it has the longer period

D. A payday loan for $1900 that is due in 12 days with a fee of $80, since it has the shorter period
Mathematics
1 answer:
Pie3 years ago
6 0

Answer:

It's D.

Step-by-step explanation:

The shorter period loan has the same total interest for the same loan amount, so it has the higher effective interest rate: 80/12 is higher than 89/14.

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