EAR versus APR Big Doms Pawn Shop charges an interest rate of 25 percent per month on
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EAR versus APR Big Dom’s Pawn Shop charges an interest rate of 25 percent per month on loans to its customers like all lenders, Big Dom must report an APR to consumers. What rate should the shop report? What is the effective annual rate?
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The APR is simply the interest rate per period times the number of periods in a year In this case t...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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