Question: I don't understand this i would really like it to be a little broken down Payday lenders have been criticized for charging excessively high interest

I don't understand this i would really like it to be

I don't understand this i would really like it to be a little broken down

Payday lenders have been criticized for charging excessively high interest on short term loans to people in poverty. Poor people may need short term loans just to buy groceries A payday lender may say, "I will give you $100 now if you write me a check for $120 which I will cash on your next payday." Assuming the next payday is I month from now. What nominal annual interest rate is the lender charging? What effective annual interest rate is the lender charging

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