Lane French had a bad credit rating and went to a local cash center. He took out a $111 loan payable in five weeks at $131.

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Cash Centres, the worst of all rip-off places

interest = 131-111 = 20
principal = 111
time = 5/52

rate = interest/(principal x time)
= 20/(111(5/52) ) = 1.874
or 187.4% interest per year

To determine the annual interest rate on Lane French's loan, we can use the formula for calculating annual percentage rate (APR).

First, we need to calculate the total cost of the loan, which includes both the principal amount and the interest paid. In this case, Lane borrowed $111 and will repay $131 in five weeks.

Total Cost of the Loan = Principal Amount + Interest
Total Cost of the Loan = $111 + $131

Next, we need to determine the interest paid over the course of five weeks. To do this, we can subtract the principal amount from the total cost of the loan.

Interest Paid = Total Cost of the Loan - Principal Amount
Interest Paid = $131 - $111

Now that we have the interest paid over five weeks, we need to find the annual interest rate. Since the loan is for five weeks, we need to convert these weeks into a yearly basis.

Weeks in a Year = 52 (assuming a standard 52-week year)

To calculate the annual interest rate, we can use the following formula:

APR = (Interest Paid/Principal Amount) * (52/Number of Weeks)

APR = ($20/$111) * (52/5)

Now, we can calculate the APR:

APR = (0.1802) * (10.4)

APR = 1.8736

The annual interest rate on Lane French's loan is approximately 1.8736, or 187.36%.