Question

Payday loans are typically $15 charge with an interest rate of 10% over a 2 wk period which variables in the interest formula are known

Answer 1

Time = period of loan

Interest amount = $15

Interest rate = 10%

Explanation:

Given:

Charge on loan = interest = $15

Interest rate on loan = 10%

Loan period = 2 weeks

The interest formula is given by the relation :

Interest = Principal * rate * time

Using the interest equation given :

The known variables Given in the question are :

Time = period of loan

Interest amount = $15

Interest rate = 10%