Question

elise took out a payday loan for $500 due in 2 weeks that charged an $80 fee. what the periodic interest rate of the loan?

Answer 1

16% apex hope this helps guys

Answer 2

Answer:

16%

Step-by-step explanation:

The periodic interest rate refers to the rate that it's charged after certain fixed period, can be yearly, monthly, daily. In this case, the periodic interest rate is due in 2 weeks.

Now, to find this interest rate, we just have to divide the fee by the loan and see what percentage represents

$\frac{\ 80}{\ 500}=0.16$

Then, we multiply by 100 to obtain the percentage

$0.16(100)= 16\%$

Therefore, the interest rate is 16%