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Let’s say that you wanted to get a $1,000 loan that you would pay back in 1 year. Assume that you will pay back all of the interest and principle of the loan in 1 year. How much interest would there be if you borrowed the money from: A bank or credit union. A cash advance from a credit card. A payday loan company. List the amount of interest you would pay in each situation (include the company websites where you found the interest rates as well as the names of each of the companies you looked into). When looking at the interest that you would pay in each situation, which do you think is the best option? Why do you think people take out loans from payday lenders given the interest that they charge?


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