What is your annualized cost of credit

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Reference no: EM13807975

You fall on hard times and take out a payday loan. The deal is as follows; you borrow $500 and must pay it back in 10 days. The interest charged on the loan is $10 and the lender requires a $3 loan origination fee. What is your annualized cost of credit? (Think APR)

A. Between 1% and 3%

B. More than 20%

C. Between 3% and 10%

D. Between 10% and 20%

Reference no: EM13807975

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