Marina had an accident with her car and the repair bill came to $900. She didn'thave any emergency fund money and no extra money in her monthly budget, so sheended up borrowing from a pay-day loan company. As long as she can pay the loanback at the end of the 30 day period she won't be charged any interest, technicallyHowever, she did have to pay an $19 processing fee per $100 that she borrowed. If she were to consider the processing fee to represent interest paid in her formula, what wouldshe discover to be the annua interest rate she was charged on her short term loan?
Marina had an accident with her car and the repair bill came to $900. She didn'thave any emergency fund money and no extra money in her monthly budget, so sheended up borrowing from a pay-day loan company. As long as she can pay the loanback at the end of the 30 day period she won't be charged any interest, technicallyHowever, she did have to pay an $19 processing fee per $100 that she borrowed. If she were to consider the processing fee to represent interest paid in her formula, what wouldshe discover to be the annua interest rate she was charged on her short term loan?
Chapter3: Income Sources
Section: Chapter Questions
Problem 79P
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Marina had an accident with her car and the repair bill came to $900. She didn'thave any emergency fund money and no extra money in her monthly budget, so sheended up borrowing from a pay-day loan company. As long as she can pay the loanback at the end of the 30 day period she won't be charged any interest, technicallyHowever, she did have to pay an $19 processing fee per $100 that she borrowed. If she were to consider the processing fee to represent interest paid in her formula, what wouldshe discover to be the annua interest rate she was charged on her short term loan?
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