Question: You attend the local payday store and ask how much a two-month loan would cost. You wish to borrow $500 and are advised they charge

You attend the local payday store and ask how much a two-month loan would cost. You wish to borrow $500 and are advised they charge an administration fee of $25. If the total amount owed after two months is $545.83, what simple interest rate was charged? (There is no interest charged on the $25 administration fee.

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