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Now you have to convert that into a simple annual rate. Payday loans are not allowed to be compounded continuously. To do that, we have to figure out how many of these two week period fit into a year.
Your first instinct is to think «Well, there are 52 weeks in a year, so thats 26 two-week periods. Multiply 23 for two week period by 26 to get five hundred ninety percent. But thats not actually the exact formula cash tree loans. Non leap years have 365 days, but note that 52 weeks x 7 days per week is 364. So, the exact formula requires using a.
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