A payday loan is structured to obscure the true interest rate you are paying. Forexample, you pay a $15 "fee" for a two-week $180 payday loan (when you repay theloan in two weeks, you pay $180+$15). What is the effective annual interest rate forthis loan? Assume 26 bi-weekly periods per year. Enter your answer as a decimal,rounded to 4 decimal places.Your Answer:

Effective rate of interest is the equivalent interest rate which is determined by considering the…

Answered: A payday loan is structured to obscure…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is%. (Round to two decimal places.)
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Can you please show the step-by-step solution. please do not skip steps. Explain how you got the answer you did
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is ______%. (Round to two decimal places.)
Some lenders offer loans with biweekly payments rather than monthly payments. Investigate the effect of this on home loans by finding the payment and total interest on a thirty-year simple interest amortized loan of $150,000 at 13% interest. (Round your answers to the nearest cent.) (a) if payments are made monthly payment $ total interest $ (b) if payments are made biweekly payment $ total interest $
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If a lender makes a simple loan of $500 for 5 years and charges 3%, then the amount that the lender receive at maturity is $ (Round your response to the nearest two decimal place) If a lender makes a simple loan of $2000 for one year and charges $90 interest, then the simple interest rate on that loan is %. (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is OA. 6.0% OB. 6.5% OC. 65% OD. 5.0%
Find the refund fraction on a 18-month loan with interest of $2,590 if the loan is paid in full with 14 months remaining. The refund fraction is| (Type an integer or a fraction.)

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