Multiple Choice
Assume you borrow $100 from a payday lender. The terms are that you must pay a fee of $25 in advance (today) and one year from now you need to repay $112. What implied interest rate are you paying?
A) 12.00 percent
B) 25.00 percent
C) 49.33 percent
D) 86.99 percent
Correct Answer:
Verified
Correct Answer:
Verified
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