Barbara got a flat tire and does not have a spare

Question:

Barbara got a flat tire and does not have a spare. She needs her car for work, so she goes to a business that offers payday loans in order to get the money to buy a new tire. She borrows $75 and plans to pay it back when she gets paid in 8 days. Barbara is charged a fee of $15 and the term on her loan is 8 days. Approximately what is the annual percentage rate on her loan?

A. 228%

B. 487%

C. 913%

D. 973%

Answer:

C. 913%