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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 used.