Which will have a higher effective interest rate — a payday loan for $1900 that is due in 14 days with a fee of $80, or a payday
loan for $1900 that is due in 12 days with a fee of $80? A. A payday loan for $1900 that is due in 12 days with a fee of $80, since it has the longer period
B. A payday loan for $1900 that is due in 14 days with a fee of $80, since it has the shorter period
C. A payday loan for $1900 that is due in 14 days with a fee of $80, since it has the longer period
D. A payday loan for $1900 that is due in 12 days with a fee of $80, since it has the shorter period
The shorter period loan has the same total interest for the same loan amount, so it has the higher effective interest rate: 80/12 is higher than 89/14.
