Determine the interest that would be charged on a two-week $300 payday loan if the interest rate is 520%, and the interest is compounded at the end of the two weeks. Explain how you came to your answer. Finally, suppose a friend or family asked you how it could be possible that an annual interest rate is higher than 100%. Write out an explanation of what you might say to them.

Watch the following video:
Oliver, J. (2014). Predatory lending: Last week tonight with John Oliver. HBO. Retrieved from https://youtu.be/PDylgzybWAw

And read the following article:
Holland, J. (2016). Rapid City payday lender stops making loans due to new lower interest rates. Rapid City Journal. Retrieved from http://rapidcityjournal.com/news/local/rapid-city-payday-lender-stops-making-loans-due-to-new/article_0424e3da-5963-54f8-b5c3-60ba7797e743.html

2.) Post one initial response of at least 150 words but not more than 350 words responding to the following. First, do you think there should be interest rate caps on payday loans or not? Defend your answer. Also, determine the interest that would be charged on a two-week $300 payday loan if the interest rate is 520%, and the interest is compounded at the end of the two weeks. Explain how you came to your answer. Finally, suppose a friend or family asked you how it could be possible that an annual interest rate is higher than 100%. Write out an explanation of what you might say to them.