kaiaallison13
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Which will have a higher effective interest rate, a payday loan for $2500 due in
17 days with a fee of $130 or a payday loan for $2500 due in 15 days with a
fee of $130?
O A. A payday loan for $2500 due in 17 days with a fee of $130,
because it has the shorter period
O B. A payday loan for $2500 due in 15 days with a fee of $130,
because it has the longer period
C. A payday loan for $2500 due in 15 days with a fee of $130,
because it has the shorter period
O D. A payday loan for $2500 due in 17 days with a fee of $130,
because it has the longer period

Respuesta :

maryamahmed7913

Answer: C. A payday loan for $2500 due in 15 days with a fee of $130,

because it has the shorter period.

Step-by-step explanation: took the quiz.

A payday loan for $2500 is due in 15 days with a fee of $130, and has a higher interest rate Option C is correct.

Given that,
a payday loan for $2500 due in 17 days with a fee of $130.
a payday loan for $2500 due in 15 days with a fee of $130.

What is interest?

Interest is the outlay you pay to borrow money. Interest is often deliberated as an annual percentage of a loan amount.

Since it is to be determined which of the option has a higher interest rate.


Of the options, only option C has the higher interest rate because interest in all the options is the same but the time duration of the interest rate varies. In option C interest levied is for a shorter period which implies if the amount is paid early interest should be lower but it's not.

Thus, a payday loan for $2500 is due in 15 days with a fee of $130, and has a higher interest rate Option C is correct.

Learn more about interest here:

brainly.com/question/13324776

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