A Person Borrows $100 from a Payday Loan Company,and Pays

question 32

Multiple Choice

A person borrows $100 from a payday loan company,and pays $10 interest for two weeks.This would result in an annual interest rate of approximately ________ percent.Ignore compounding.

• A)110
• B)260
• C)10
• D)20
• E)5

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Definitions:

Drain

To remove liquid from an area or object, often used in contexts of plumbing or natural water movement.

Expert Witness

A specialist with specific knowledge, experience, or skills in a particular field, recruited to provide testimony or opinion in legal proceedings.

Standard Of Care

The degree of care and diligence expected from a person or entity in a specific situation, often used in legal contexts to establish negligence.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in unintended harm to another party.