You are expecting a tax refund of $2,000 in 10 weeks. A tax preparer offers you an "interest-free" loan of $2,000 for a fee of $50 to be repaid by your refund check when it arrives in 10 weeks. Thinking of the fee as interest, what weekly simple interest rate would you be paying on this loan (as a percent)? What is the corresponding annual rate (as a percent)? weekly simple interest rate
You are expecting a tax refund of $2,000 in 10 weeks. A tax preparer offers you an "interest-free" loan of $2,000 for a fee of $50 to be repaid by your refund check when it arrives in 10 weeks. Thinking of the fee as interest, what weekly simple interest rate would you be paying on this loan (as a percent)? What is the corresponding annual rate (as a percent)? weekly simple interest 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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You are expecting a tax refund of $2,000 in 10 weeks. A tax preparer offers you an "interest-free" loan of $2,000 for a fee of $50 to be repaid by your refund check when it arrives in 10 weeks. Thinking of the fee as interest, what weekly simple interest rate would you be paying on this loan (as a percent)? What is the corresponding annual rate (as a percent)?
weekly simple interest rate
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Step 1
When lender issue loans to borrowers for a certain time period. He charges some interest on the principal amount. The rate of interest can be simple or can be compounded, it depends upon the terms of the contract.
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