Given correct answer general Accounting question A person borrows $200 from a payday loancompany and pays $10 interest for twoweeks. This would result in an annualinterest rate of approximatelyIgnore compounding.percent.

Step 1: Define Loan InterestIn economics and finance, loan interest is the cost one pays for…

Answered: A person borrows $200 from a payday…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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A person borrows $200 from a payday loan company and pays $10 interest for two weeks. This would result in an annual interest rate of approximately Ignore compounding. percent.