Big Dom's Pawn Shop charges an interest rate of 17 percent per month on loans to itscustomers. Like all lenders, Big Dom must report an APR to consumers.a. What rate should the shop report?APR204.00%EAR204.00%17.00%199.92%193.80%b. What is the effective annual rate?530.11%558.01%204.00%18.39%116.50%

Big Dom's Pawn Shop charges an interest rate of 17 percent per month on loans to its customers. Like…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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a. What rate should the shop report? APR 204.00% 204.00% 17.00% 199.92% 193.80% b. What is the effective annual rate?