will fan and medal!
Can somebody help me solve this with an explanation please!!
What is the APR of a payday loan for $1100 due in 5 days that charges a $165 fee?

Question

anonymous · Answer

@perl

perl · Answer

the borrower receives $1100 today, and must pay $1265 in 5 days

perl · Answer

how many 5 day periods are in a 365 day year?

perl · Answer

its a little more involved

anonymous · Answer

so 73?

perl · Answer

365/5 = 73 periods of 5 days in a year. 

73 * $165 = $12,045  total interest in a year (if he kept that rate in 5 days)

anonymous · Answer

but then how would we find the percentage?

perl · Answer

12,045 / 1100 = 10.95 = 10.95 * 100 %

perl · Answer

1095% APR

anonymous · Answer

thank you so much i will refer to this every time i come across a question like this!!

anonymous · Answer

life saver like for reals!