Some of the most common (and most dangerous) examples of simple interest are sho

Question

Some of the most common (and most dangerous) examples of simple interest are short-term payday loans which some lenders also call "cash advances." (This is not to be confused with a cash advance on a credit card.) Let's say that you're going to get paid in 10 days, and you need some cash for a car repair now. A payday lender might lend you $350 now, and you'll be asked to pay them back when your paycheck comes. Of course, you'll have to pay interest. The median ice charged by these types of lenders is $15 per every $100 borrowed. How much would you have to pay back in 10 days? What is the percent interest you're charged?

Explanation / Answer

here median fee charged is given as $15 per every $100. This means interest rate of 15 % per 15 day which is equal to 10% for 10 days.

a) Amount to be paid back = 10% of $350 +$350 = $385

b> percent interst charged is 10% for 10 days.

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