Some of the most common (and most dangerous) examples of simple interest are short-term payday loans,...

 

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Some of the most common (and most dangerous) examples of simple interest are short-term payday loans, which some lenders also call "cash advances". (This is not to be confused with a cash advance on a credit card.) Let's say that you're going to get paid in ten days, and you need some cash for a car repair now. A payday lender might lend you $325 now, and you'll be asked to pay them back when your paycheck comes. of course, you'll have to pay interest. The median fee charged by these types of lenders is $25 per every $100 borrowed. How much would you have to pay back in ten days? The amount of money you'd have to pay back is S Some of the most common (and most dangerous) examples of simple interest are short-term payday loans, which some lenders also call "cash advances". (This is not to be confused with a cash advance on a credit card.) Let's say that you're going to get paid in ten days, and you need some cash for a car repair now. A payday lender might lend you $325 now, and you'll be asked to pay them back when your paycheck comes. of course, you'll have to pay interest. The median fee charged by these types of lenders is $25 per every $100 borrowed. How much would you have to pay back in ten days? The amount of money you'd have to pay back is S

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Loan amount 325 When 100 is borrowed in... View the full answer