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determine the interest that would be charged on a two-week $300 payday loan if the interest rate is 520%, and the interest is compounded at the end of the two weeks. Explain how you came to your answer

Respuesta :

Answer:

$60

Explanation:

The computation of the interest is shown below:

= Principal × interest rate × number of weeks ÷ total number of weeks in a year

= $300 × 520% × 2 weeks ÷ 52 weeks

= $60

Basically we applied the simple interest formula and we assume the total number of weeks in a year is 52 weeks

So, the interest at the end of two weeks is $60

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