## Payday Loans Interest:

Payday loans offer loan against paycheck and the borrower has to pay back the loan is a short span of time (usually 1 of 2 weeks). While the interest amount may seem small, the effective interest rate runs into high figures due to small time period of loan.

The compounded annual rate implied is 4691.95%

We have 16% charged for 2 weeks.

2 weeks = 14 days.

Number of 2 weeks in a year = 365 / 14

He...

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