Payday Loans Are High-Interest Short-Term Loans, Usually Over A Period Of Two Weeks. One

Payday loans are high-interest short-term loans, usually over a period of two weeks
One recurring political question is whether or not interest rates on such loans should be capped
Roughly speaking, those in favor of caps want to protect consumers from potentially harmful loans, while those against caps want to let the free market determine what the rate should be
Watch the following video: Oliver, J
(2014)
Predatory lending: Last week tonight with John Oliver
HBO
And read the following article: Holland, J
(2016)
Rapid City payday lender stops making loans due to new lower interest rates
Rapid City Journal
2
) Post one initial response of at least 150 words but not more than 350 words responding to the following
First, do you think there should be interest rate caps on payday loans or not? Defend your answer
Also, determine the interest that would be charged on a two-week $300 payday loan if the interest rate is 520%, and the interest is compounded at the end of the two weeks
Explain how you came to your answer
Finally, suppose a friend or family asked you how it could be possible that an annual interest rate is higher than 100%
Write out an explanation of what you might say to them