Question

Kimberly took out a payday loan for $1500 due in 4 weeks that charged a $135 fee. What is the periodic interest rate of the loan?
9%
468%
36%
117%

Answer 1

Answer:

The periodic interest rate of the loan is 9 %.

Step-by-step explanation:

Given,  

The amount of loan = $ 1500,

Interest per period = $ 135,

Hence, the periodic interest rate of the loan

$=\frac{\text{Interest per period}}{\text{The amount of loan}}\times 100$

$=\frac{135}{1500}\times 100$

$=\frac{13500}{1500}$

$=9\%$

First option is correct.

Answer 2

The correct answer is 9% -- APEX