Compound Frequency Payday Loans Are Very Short Term Loans That Charge Very High

Compound Frequency Payday loans are very short-term loans that charge very high interest rates. You can borrow $900 today and repay $1,071 in two weeks. What is the compound annual rate implied by this 19 percent rate charged for only two weeks?

a.20.85%

b. 9,109.18%

c. 22.80%

d.19.80%

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