EXPLANATION
Given that the loan is of $250 and the fee of $10, we can apply the simple interest rate formula in order to get the appropiate value as shown as follows:
Dividing 10 by 250 give us 10/250 = 0.04 or 4%
In conclusion, 10 represents a monthly 4% or multiplying by twelve months It give us a 48% annualy.
In conclusion, the simple annual interest rate is 48%
