Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $260 in two weeks. What is the compounded annual rate implied by this 30 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to the nearest whole percent.) Answer is complete but not entirely correct. Compounded annual rate 26 %

Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $260 in two weeks. What is the compounded annual rate implied by this 30 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to the nearest whole percent.) Answer is complete but not entirely correct. Compounded annual rate 26 %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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ENGINEERING ECONOMICS under Compound Interest Dont't use excel. Just use formule to show the solution.
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Q30 Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $488 in two weeks.What is the compounded annual rate implied by this 22 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to 2 decimal places.) COMPOUND ANNUAL RATE_______%