Ricky Ripov's Pawn Shop charges an interest rate of 14 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. Requirement 1: What rate should the shop report? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to decimal places (e.g., 32.16). Annual percentage rate % Requirement 2: What is the effective annual rate? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Effective annual rate %
Ricky Ripov's Pawn Shop charges an interest rate of 14 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. Requirement 1: What rate should the shop report? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to decimal places (e.g., 32.16). Annual percentage rate % Requirement 2: What is the effective annual rate? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Effective annual rate %
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
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Transcribed Image Text:Ricky Ripov's Pawn Shop charges an interest rate of 14 percent per month on loans to its customers. Like
all lenders, Ricky must report an APR to consumers.
Requirement 1:
What rate should the shop report? (Round your answer as directed, but do not use rounded numbers
in intermediate calculations. Enter your answer as a percent rounded to decimal places (e.g., 32.16).
Annual percentage rate
Requirement 2:
What is the effective annual rate? (Round your answer as directed, but do not use rounded numbers
in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g.,
32.16).)
Effective annual rate
%
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