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ratelena [41]
3 years ago
7

Mackenzie took out a payday loan for $1100 that charged a $95 fee. If the loan matures in 2 weeks, what is the approximate effec

tive interest rate of the loan?
Mathematics
2 answers:
Leona [35]3 years ago
5 0

Answer:

For apex , the answer is 764%

Step-by-step explanation:


Alexeev081 [22]3 years ago
4 0

We are asked to solve for the approximate effective interest rate of the loan and the given values are:
Payday load = $1100
Charge fee = $95

Solving for interest we have:
% interest = $95/$1100
% interest = 8.64 %

The answer to the problem is 8.64%.
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let's firstly convert the mixed fractions to improper fractions and then divide.

\bf \stackrel{mixed}{6\frac{1}{2}}\implies \cfrac{6\cdot 2+1}{2}\implies \stackrel{improper}{\cfrac{13}{2}}~\hfill \stackrel{mixed}{1\frac{5}{8}\implies \cfrac{1\cdot 8+5}{8}}\implies \stackrel{improper}{\cfrac{13}{8}} \\\\[-0.35em] ~\dotfill

\bf \stackrel{\textit{total salad}}{\cfrac{13}{2}}\div \stackrel{\stackrel{\textit{conainer's}}{\textit{capacity}}}{\cfrac{13}{8}}\implies \cfrac{\begin{matrix} 13 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}}{\underset{1}{\begin{matrix} 2 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}}}\cdot \cfrac{\stackrel{4}{\begin{matrix} 8 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}}}{\begin{matrix} 13 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}}\implies 4

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