For Exercises 46 and 47, refer to the following. Payday lenders provide small loans until the borrower’s next payday. The borrower receives the desired cash in exchange for a postdated check in the amount of the loan plus a fee, which is usually a percentage of the loan amount (often 15% to 20% for a two-week loan). In many states, there are now more payday loan offices than McDonald’s fast-food outlets. The average loan amount is $300. You can think of such a loan as an add-on loan with a single payment at the end of the loan term.