Tax Preparation Loan Many tax preparation organizations will prepay customers’ tax refunds if they pay a one-time finance charge. In essence, the customer is borrowing the money (the refund minus the finance charge) from the tax preparer, prepaying the interest (as in a discount note), and then repaying the loan with the tax refund. This procedure allows customers access to their tax refund money without having to wait. Joy had a tax refund of $743.21 due. She was able to get her tax refund immediately by paying a finance charge of $39.95. What annual simple interest rate, to the nearest hundredth of a percent, is Joy paying for this loan assuming
- a. the tax refund check would be available in 5 days?
- b. the tax refund check would be available in 10 days?
- c. the tax refund check would be available in 20 days?
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Survey of Mathematics with Applications, A, a la Carte edition plus NEW MyLab Math with Pearson eText (10th Edition)
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