A tax preparation company offers to advance you your $500 tax refund for a fee of $45. If you waited for the tax refund, you would get it within 90 days. So you are effectively borrowing $500 for 90 days and paying a fee (interest) of $45. Effectively, what simple annual interest rate are you paying? Assume a 365 day year. Enter your answer as a percent, rounded to the next whole number.

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1 First lets calculate the time in years We have 90 days and ... View the full answer