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a payday loan store charges $30 for a one-month loan of $600. What is the annual interest rate is this equivalent to ?

Respuesta :

JDcap
Finding what percentage is $30 of $600:
[tex] \frac{30}{600} \times100=5\%[/tex]
So, it is 5% per month.

Converting it to annual:
[tex]5\%\times 12=60\%[/tex]
abiolataiwo2015

Based on the information given the annual interest rate is this equivalent to 60%.

Given:

Charges=$30

Loan=$600

Let r represent the interest rate

Hence,

r/12=$30/$600

r/12=0.05

r=0.05×12

r=0.6×100

r= 60%

Inconclusion the annual interest rate is this equivalent to 60%.

Learn more about interest rate here:https://brainly.com/question/25720319

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