Homework Help is Here – Start Your Trial Now!
Business
Finance
Life-leech payday lenders offers 7-day loans at 302% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 20% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $2064.61 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer: 6105.83

Life-leech payday lenders offers 7-day loans at 302% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 20% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $2064.61 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer: 6105.83

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

Ee 205.

Life-leech payday lenders offers 7-day loans at 302% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 20% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $2064.61 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer: 6105.83
Transcribed Image Text:Life-leech payday lenders offers 7-day loans at 302% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 20% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $2064.61 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer: 6105.83
Expert Solution
steps

Step by step

Solved in 6 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS