Respuesta :
A payday loan for $1900 that is due in 12 days with a fee of $80, since it has the shorter period
We will find effective interest rate for each case
case-1:
a payday loan for $1900 that is due in 14 days with a fee of $80
effective interest rate =[tex] \frac{1900}{14} +80 [/tex]
effective interest rate =$215.71429 per day
case-2:
a payday loan for $1900 that is due in 12 days with a fee of $80
effective interest rate =[tex] \frac{1900}{12} +80 [/tex]
effective interest rate =$238.3333 per day
We can see that second interest rate is higher because number of days are lesser
so,
option-D...........Answer
