Big Dom's Pawn Shop charges an interest rate of 30 percent per month on loans to its

Question:

Big Dom's Pawn Shop charges an interest rate of 30 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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Question Posted: Dec 16, 2016 01:47 PM

See More Questions

EAR versus APR Big Doms 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...
Ricky Ripov's Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. What rate should the shop report? What is...
Ricky Ripov's Pawn Shop charges an interest rate of 13.7 percent per month on loans to its customers. Like all lenders. Ricky must report an APR to consumers. What rate should the shop report? What...
You kick a soccer ball, compressing it suddenly to 2/3 of its original volume. In the process, you do 410 J of work on the air (assumed to be an ideal gas) inside the ball. (a) What is the change in...
Ling Company owns several mining claims in Nevada and California. The claims are carried on the books at the cost paid to acquire them 10 years ago. At that time, it was estimated that the claims...
Appalachian Bakery Company manufactures cookies. Materials are placed in production in the Baking Department and after processing are transferred to the Packing Department, where packing materials...
The standard labour and the actual labour engaged during the month are given below: Skilled Semi-skilled Unskilled (a) Standard no. of workers in a group 30 10 10 (b) Standard Rate (in Rs.) per hour...
Harrys Potter's yearly earnings depend on the local weather conditions. If the weather over the year is good (which happens with a probability of .4), Harrys Potter's pre-tax earnings are high and...
Annual Operating Expenses: Fixed Costs: SAR 1 . 8 7 5 million including SAR 3 0 0 , 0 0 0 depreciation. Variable Costs: SAR 5 . 6 2 5 million in Year 1 , expected to increase by 1 0 % annually due to...
Using the expression for the gradient in polar coordinates (Appendix A), find the gradient of (r, ) when Where is the gradient maximum? The terms A and a are constant. a V = Ar sin 0( 1
An investment will pay you $58,000 in seven years. If the appropriate discount rate is 10 percent compounded daily, what is the present value?
Investment X offers to pay you $6,000 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for six years. Which of these cash flow streams has the higher present value if...
From the perspective of a securities market regulator, is more required disclosure always better than less? Why or why not?
Country Analysis of Milan: -Discuss the overall cultural, political, legal, economic, and technological infrastructure issues that could potentially impact a product's introduction in Milan. -You...
Sarah is a highly introverted employee who works in a fast-paced sales team. Her manager recently noticed that Sarah tends to be reserved during team meetings and rarely volunteers her ideas....
Community Disaster Preparedness Review the information found at https://www.ready.gov/community-preparedness-toolkit Look at the steps involved in formulating community response to a disaster....
The topic of diversity, tolerance, and inclusion has been widely (and, in many cases, hotly) debated in society over the past several years. In my opinion (and this is up for discussion - hence this...
The objective of this coursework is for you to critically engage with the theory and practice of promoting wellbeing or equality, diversity and inclusion (including cultural diversity) for employees...
Which is the best example of a team leader providing descriptive rather than evaluative feedback to a team member? a. You are a slacker. b. You are not responsible. c. You cause me a lot of problems....
CLASS PERIO Solving Linear Equations: Variable on Both Sides Solve each equation. 1) 6r+ 7 = 13 + 7r 3) -7x-3x+2=-8x-8 5)-14 +66+7-26=1+5b 7) n-3n = 14-4n 2) 13-4x=1-x 4)-8-x= x - 4x 6)n+2=-14-n 8)...
Your firm is contemplating the purchase of a new $580,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $60,000 at...
You are evaluating two different silicon wafer milling machines. The Techron I costs $240,000, has a three-year life, and has pretax operating costs of $63,000 per year. The Techron II costs...
Dahlia Enterprises needs someone to supply it with 120,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract....
Based on the regression output (below), would you purchase this actively managed fund with a fee of 45bps ? Answer yes or no and one sentence to explain why.
What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $967.00? That sells for $1,206.10?
1)Prepare the journal entry to record Tamas Companys issuance of 6,500 shares of $100 par value, 9% cumulative preferred stock for $105 cash per share. 2. Assuming the facts in part 1, if Tamas...

Big Dom's Pawn Shop charges an interest rate of 30 percent per month on loans to its

Question:

Step by Step Answer:

The APR is simply the interest rate per period times the number of periods in a year In this case th...View the full answer

Fundamentals of corporate finance

Students also viewed these Corporate Finance questions