Answer:
b. total fees divided by loan amount
Step-by-step explanation:
The interest rate on a payday loan is usually calculated by dividing the total fees accrued in the loan repayment calculation by the exact loan amount.
Doing this will result in determining the interest rate used in a loan and it’s usually important to ensure accountability and also making sure the exact rate contained in the Loan application agreement Is the same as what is used later on.
