Question: Given the same information in #5 below, what is the compound annual interest rate implied if the loan fee (interest) is $50? What is the

Given the same information in #5 below, what is the compound annual interest rate implied if the loan fee (interest) is $50? What is the compound annual interest rate implied.

5. Payday loans are very short-term loans that charge very high interest rates. You can borrow $500 today and repay $535 in two weeks. What is the compound annual rate implied by this percent rate charged for only two weeks? $35/$500 = 7% 365 days / 14 days = 26.071 7 x 26.071 = 182.497% interest

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