You are a South Dakota resident and want to get a $500 "Pay Day" loan from www.paydayone.com (yes, this is real). To borrow $500, you need to pay back $612.50 two weeks later. What is the APR and EAR of this loan? (There are 26 2-week periods in a year.)

Answer rating: 100% (QA)

To calculate the APR Annual Percentage Rate and EAR Effective Annual Rate for this payday loan you c... View the full answer