Assume You Borrow $100 from a Payday Lender

question 34

Multiple Choice

Assume you borrow $100 from a payday lender. The terms are that you must pay a fee of $25 in advance (today) and one year from now you need to repay $112. What implied interest rate are you paying?

• A) 12.00 percent
• B) 25.00 percent
• C) 49.33 percent
• D) 86.99 percent

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Definitions:

Charitable Nonprofits

Organizations dedicated to furthering a social cause or advocating for a shared point of view without seeking profit margins.

Largest Subsector

The biggest segment within a sector, often characterized by having the most organizations, employees, or revenue.

Nonprofit Sector

The segment of the economy consisting of organizations established for purposes other than making a profit, such as charities, educational foundations, and cultural institutions.

Total U.S. Workforce

The complete count of all employed individuals within the United States, including both private and public sectors.