Answer:
295.89%
Step-by-step explanation:
Let us assume the APR of the payday loan is r%.
Therefore, a $100 loan for the period of 1 year will charge $r.
So, $1095 loan for the period of 1 year will charge $[tex]\frac{1095 \times r }{100}[/tex]
So, $ 1095 loan for the period of 1 months will charge $[tex]\frac{1095 \times r }{100 \times 12}[/tex]
Hence, $ 1095 loan for the period of 15 days will charge $[tex]\frac{1095 \times r }{100 \times 12 \times 2}[/tex]
So, [tex]\frac{1095 \times r }{100 \times 12 \times 2} =135[/tex]
⇒ 0.45625r = 135
⇒ r = 295.89
Therefore, the APR is 295.89%.
