2006-09-13 03:45:53 · 4 answers · asked by Wildflower 3 in Business & Finance ➔ Personal Finance
Actually, it's much worse than that. You forgot about compound interest.
You pay $72 interest for the FIRST 25 days.
After that, you owe them $372. So for the second period of 25 days, you owe 24% interest over $372.
And so forth, and so on....
By the end of one year, you'd owe them well over $6000.
That's over 2000% APR.
2006-09-13 04:14:01 · answer #1 · answered by OMG, I ♥ PONIES!!1 7 · 0⤊ 0⤋
If the finance charge on a $300 loan is $72 for just 25 days the APR =
24% times 365/25
24% times 14.6 or 350.4 %
2006-09-13 10:55:12 · answer #2 · answered by Andy FF1,2,CrTr,4,5,6,7,8,9,10 5 · 0⤊ 0⤋
My GOD... who did you borrow the money from?... some guy named "Louie" dressed in a black suit with a silver tie and a bulge under his jacket?
Those are usuery rates... Those are the kids of loans the mob used to make to dock workers before the government shut them down.
2006-09-13 10:53:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
YOU DO NOT WANT TO KNOW AS YOU WOULD THROW UP . HOW CAN ANYBODY BE SO IGNORANT AS TO TAKE THESE LOANS OUT ?????
2006-09-13 15:49:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋