A payday loan is structured to obscure the true interest rate you are paying. For example,...

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A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $26 Yee

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Total amount to be paid at the time of repayment	$ 241
Loan taken	$ 215
Extra amount paying	$ 26
Loan period	2 weeks
Interest for 2 weeks ($26*100/$215)	12.09%
Interest for 26 weeks or per annum (12.09%*26/2)	157%

Therefore, the effective annual interest for this loan is 157%

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