Bottom line: You borrow $200. In six weeks you owe $365.
Obviously, this is an outrageous interest rate to be charged for this cash advance.
Interest Calculation:
If the interest charged for six weeks on a $200 loan was $165, then to determine the weekly interest charge, divide $165 by six. This equals a weekly interest charge of $27.50. To determine the annual interest charge, take $27.50 times 52 (52 weeks in a year). This equals $1,430 per year in interest.
To determine the interest rate charged for borrowing $200, take $1,430 divided by $200 = 7.15. To convert this into a percentage, move the decimal point two places (numbers) to the right and it becomes 715 or 715%.
Obviously, this is an outrageous interest rate to be charged for this cash advance.
Interest Calculation:
If the interest charged for six weeks on a $200 loan was $165, then to determine the weekly interest charge, divide $165 by six. This equals a weekly interest charge of $27.50. To determine the annual interest charge, take $27.50 times 52 (52 weeks in a year). This equals $1,430 per year in interest.
To determine the interest rate charged for borrowing $200, take $1,430 divided by $200 = 7.15. To convert this into a percentage, move the decimal point two places (numbers) to the right and it becomes 715 or 715%.
