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It's Your Paycheck Lesson 8

In this lesson you will learn what a payday loan is and the high cost involved in using such a loan. You will calculate the annual percentage rate (APR) on a loan and see why comparing loans using APR is more informative than simply comparing by interest rates.

When you have finished this lesson you should be able to:

  • Define loan, payday loan, interest rate and annual percentage rate.
  • Calculate an annual percentage rate.
  • Explain key facts regarding payday loans.