1. Moneytree, a payday loan company, offers the following loan. They will give you $100 now, and in two weeks you will pay them back $115.
   • If you view this loan as a simple interest loan over time, what is the annual interest rate? How does this interest rate compare to interest rates for other loans like mortgages and credit cards? Show your steps
   • Why would a payday loan company charge an interest rate like that?
2. You can afford monthly payments of $1,900. Current mortgage rates are 3.09% for a 30-year fixed-rate loan. You are required to make a 20% down payment and have the cash to do it. What price home can you afford?

Answer rating: 100% (QA)

Interest charged for two weeks S115100S100 015 or 15 So Simple ... View the full answer