A short-term lender charges 2.5 percent interest for a two-week period. What would be the annual interest rate from that lender?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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A short-term lender charges 2.5 percent interest for a
two-week period. What would be the annual interest
rate from that lender?
Transcribed Image Text:A short-term lender charges 2.5 percent interest for a two-week period. What would be the annual interest rate from that lender?
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