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 […]