Question: You need a quick $700 to pay this months cell phone bill. A payday loan company will lend you that amount for three weeks, charging

You need a quick $700 to pay this months cell phone bill. A payday loan company will lend you that amount for three weeks, charging you a fee of only $50 (meaning you pay back $750 in 21 days). The fee will be due on the day you pay off the loan. Recognizing that the fee is in reality the interest payment, please answer the following two questions. Assume 365 days in a year. What is the Annual Percentage Rate (APR) on this loan if you assume daily compounding? And what is the EAR on this loan?

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