Question 21 of 25 Step 1 of 1 A payday loan is made for four weeks, where the amount of interest owed per \( \$ 100 \) borrowed is \( \$ 30 \). If you borrow \( \$ 800 \) for four weeks, how much do you owe at the end of the four weeks? AnswerHow to enter your answer (opens in new window) 2 Points Prev

When taking out a payday loan, the interest is typically steep. In this case, for every \( \$ 100 \) borrowed, you owe \( \$ 30 \) in interest. For an \( \$ 800 \) loan, you would calculate your interest by multiplying \( 800 \) by \( 30 \) and dividing it by \( 100 \), which gives you \( \$ 240 \) in interest. Consequently, at the end of the four weeks, you would owe a total of \( \$ 800 + \$ 240 = \$ 1,040 \). Understanding the ins and outs of payday loans is crucial! They're designed for short-term financial help but often come with high interest rates, leading many to a cycle of debt. To avoid this, try to budget and set aside savings for emergencies. Exploring alternative options like credit unions or personal loans can be more cost-effective!