Question

Please solve this for me. Its very urgent. Solve it correctly.

Delayed Deposit Services
DELAYED DEPOSIT SERVICES, §533D.9
533D.9 Fee restriction — required disclosure.
1. A licensee shall not charge a fee in excess of fifteen dollars on the first one hundred dollars on the face amount of a check or more than ten dollars on subsequent one hundred dollar increments on the face amount of the check for services provided by the licensee, or pro rata for any portion of one hundred dollars face value.
2. A licensee shall give to the maker of the check, at the time any delayed deposit service transaction is made, or if there are two or more makers, to one of them, notice written in clear, understandable language disclosing all of the following:
a. The fee to be charged for the transaction.
b. The annual percentage rate as computed pursuant to the federal Truth in Lending Act.
c. The date on which the check will be deposited or presented for negotiation.
d. Any penalty, not to exceed fifteen dollars, which the licensee will charge if the check is not negotiable on the date agreed upon. A penalty to be charged pursuant to this section shall only be collected by the licensee once on a check no matter how long the check remains unpaid. A penalty to be charged pursuant to this section is a licensee’s exclusive remedy and if a licensee charges a penalty pursuant to this section no other penalties under this chapter
or any other provision apply.
3. In addition to the notice required by subsection 2, every licensee shall conspicuously display a schedule of all fees, charges, and penalties for all services provided by the licensee authorized by this section. The notice shall be posted at the office and every branch office of the licensee.

Using the information included above from the Iowa Code, calculate the maximum fee that a payday lender in Iowa can charge on a $500 payday loan for a term of 14 days. Please use the steps included below to calculate the annual percentage rate (APR) of a loan with a term of one year or less as developed by the Federal Reserve Bank of St. Louis.

Payday loan balance	Maximum fee
$100
$200
$300
$400
$500
Step 1: Add all fees and interest charges to calculate total fees
Step 2: Divide the total fees by the amount financed (borrowed)
Step 3: Multiply the answer by the number of days in a year - 365
Step 4: Divide the answer by the term of the loan expressed in days
Step 5: Move the decimal point two places to the right and add a percent sign

Answer 1

Formula for maximum fee

If the AF is greater than $85, the maximum fee is {$15+[(AF-85)*1/9]}, where AF is Amount Financed.

So for $100 payday loan = {$15+[(100-85)*1/9]} comes to $16.67

For $200 payday loan = {$15+[(200-85)*1/9]} comes to $ 27.78

Applying formula to rest payday loan, below summary arrives.

Payday loan balance	Maximum fee	Remarks
$100	16.67
$200	27.78
$300	38.89
$400	50.00
$500	61.11
Step 1: Add all fees and interest charges to calculate total fees	194.44	(16.67+27.78+38.89+50+61.11)
Step 2: Divide the total fees by the amount financed (borrowed)	0.39	194.44 / 500
Step 3: Multiply the answer by the number of days in a year - 365	141.94	0.39*365
Step 4: Divide the answer by the term of the loan expressed in days	10.1389	141 / 14
Step 5: Move the decimal point two places to the right and add a percent sign	1013.89%