Problem
Michael needs to borrow $500 to fix his computer for the spring semester. He went to a payday loan company with the idea that he would cover the loan with his next paycheck which is happening in four weeks. The company would require Michael to pay $590 in four weeks.
i. Determine the interest amount charged for the 4-week period.
ii. Determine the interest rate charged for the 4-week period.
iii. Determine the yearly nominal interest rate charged.
iv. Determine the effective interest rate charged.