Answered: Suppose you wish to borrow $400 for…

Suppose you wish to borrow $400 for four weeks and the amount of interest you must pay is $20 per $100 borrowed. What is the APR at which you are borrowing money?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

Suppose you wish to borrow $400 for four weeks and the amount of interest you must pay is $20 per $100 borrowed. What is the APR at which you are borrowing money?

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