How Expensive are Payday Loans?
Source: Council for Economic Education (EconEdLink) | Type: Lesson
Students will learn how a payday loan works by watching a video. They will learn that payday loans are an expensive form of borrowing and then calculate the total cost of a payday loan using several methods (table, graph, and formula). Students will learn what makes payday loans an expensive form of quick cash and how to evaluate offers. They will learn the effect rolling over a payday loan can have and also calculate the total cost of the loans and the Annual Percentage Rate (APR).
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