Assume you borrow $500 from a payday lender. The terms are that you must pay a fee of $75 in advance (today) and one year from now you need to repay $750. What implied interest rate are you paying?
A) 43.09%
B) 55.78%
C) 76.47%
D) 81.03%

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The Answer of Assume you borrow $500 from a payday lender. The terms are that you must pay a fee of $75 in advance (today) and one year from now you need to repay $750. What implied interest rate are you paying?
A) 43.09%
B) 55.78%
C) 76.47%
D) 81.03%

Assume You Borrow $500 from a Payday Lender