Leigh took out a payday loan for $400 due in 2 weeks that charged a $50 fee. What is the periodic interest rate of the loan? Show your work.

Question

YoursTruly · Answer

@Arcadiouse

Arcadiouse · Answer

weird question idk

RawlsK29 · Answer

You would start out with the formula.

RawlsK29 · Answer

So, the fee is $50 and the P which would be the loan is $400 and R is the periodic interest rate.
Now, you have to solve T times 2/50 or T*2/50
You would now solve for the formula R
R=I÷pt
( We got the T ready, now we need the R )

So we now have R=50÷(400×(2÷52))  because we had 2/50
Then we multiply R=3.25×100

R=325%

What is the periodic interest rate of the loan? 325%

(How I got 3.25 is I did  50÷(400×(2÷52)
Hope this Helps!(: