Question

What is the APR of a payday loan for $1100 due in 5 days that charges a $165 fee?

A. 1095%


B. 109.5%


C. 10.95%


D. 10,950%

Answer 1

$165 divided by 1,100= .15
Times that by 365 for each day of the year
Which will equal 54.75 divided that by 5 for the amount of days that the loan was for which equals 10.95, then times that by 100 which equals 1,095