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.)
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.)
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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