Multiple Choice
Assume you borrow $500 from a payday lender. The terms are that you must pay a fee of $75 in advance (today) and one year from now you need to repay $750. What implied interest rate are you paying?
A) 43.09 percent
B) 55.78 percent
C) 76.47 percent
D) 81.03 percent
Correct Answer:
Verified
Correct Answer:
Verified
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