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Olegator [25]
2 years ago
7

Unsecured loans intended for short time periods at very high interest rates are called payday loans, because they are supposed t

o be repaid at the next payday. Wonga, the largest payday loan maker in Britain, typically charges 1% interest per day. Find Wonga's annual rate of interest.
Mathematics
1 answer:
nasty-shy [4]2 years ago
7 0

9514 1404 393

Answer:

   3678%

Step-by-step explanation:

If we assume the interest is compounded, then the effective annual rate is ...

  ((1 +1%)^365 -1) × 100% = (37.7834 -1)×100% ≈ 3678%

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Step-by-step explanation:

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Keywords: multiplication, division

Learn more about multiplication at:

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