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Natali5045456 [20]
4 years ago
6

Bob hasn't been managing his finances very well and is in need of an emergency loan to pay rent. On July 10, he goes to Cash4U f

or a payday loan and borrows $500. Bob writes a postdated check for $555 which Cash4U will cash 6 days later on July 16. What is Bob's APR on his $500 loan?
Business
1 answer:
Andrei [34K]4 years ago
3 0

Answer:

APR = 669.17%

Explanation:

Cash 4U is charging $55 in interest for 6 days, that means it is charging Bob $9.17 in interest per day which is equivalent to 1.8333% daily interest. If we want to determine the APR we just have to multiply the daily interest by 365 days = 1.8333% per day x 365 days = 669.17%

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