Many tax preparation organizations will prepay customers' tax refunds if they pay a one-time finance charge. In essence, the customer is borrowing the money (the refund minus the finance charge) from the tax preparer, prepaying the interest (as in a discount note) and then repaying the loan with the tax refund. This procedure allows customers access to their tax refund money without having to wait. Joy had a tax refund of $744.43 due. She was able to get her tax refund immediately by paying a finance charge of $39.57. What annual simple interest rate is Joy paying for this loan assuming the following are true? Assume 360 days in a year. a) The tax refund check would be available in 5 days. b) The tax refund check would be available in 10 days. c) The tax refund check would be available in 20 days.

Many tax preparation organizations will prepay customers' tax refunds if they pay a one-time finance charge. In essence, the customer is borrowing the money (the refund minus the finance charge) from the tax preparer, prepaying the interest (as in a discount note) and then repaying the loan with the tax refund. This procedure allows customers access to their tax refund money without having to wait. Joy had a tax refund of $744.43 due. She was able to get her tax refund immediately by paying a finance charge of $39.57. What annual simple interest rate is Joy paying for this loan assuming the following are true? Assume 360 days in a year. a) The tax refund check would be available in 5 days. b) The tax refund check would be available in 10 days. c) The tax refund check would be available in 20 days.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 69TA

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