Question: In 'N Out Payday Loans advertises that for a fee of only $10, you can immediately borrow up to $200 for one month. If a

In 'N Out Payday Loans advertises that for a fee of only $10, you can immediately borrow up to $200 for one month. If a person accepts the offer, what are

(a) The nominal interest rate per year

(b) The effective rate per year?

Step by Step Solution

★★★★★

3.30 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Solution a Interest rate ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (1044).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

What nominal interest rate per year is equivalent to 11.5% per year, compounded monthly?

Accounting 1. You borrowed $10,000 at 8% nominal interest rate per annum and compounded semi-annually. How much would be the total interest payable at the end of five years if you did not make any...

What effective interest rate per year is equal to 1.2% per month, compounded continuously? Show hand and spreadsheet solutions.

You accept an offer from a Payday Loans company saying that for a fee of $ 2 0 , you can immediately borrow up to $ 4 0 0 for one month. According to this offer, what are ( a ) the nominal interest...

1. A 20-year annuity immediate pays 100 the first year and increases by 100 a year through year 10. Starting in year 11 each yearly payment is 5% greater than the previous payment. The annuity earns...

3. In A}: Lang Loans advertises that for a fee of only RM 10, you can immediately.F barrow up to RM2OD for one month. If a person accepts the nfferi determine a. the nominal interest rate per year b....

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

check the answer which i did wrong and help me change the right answer 4 points each. Show all work. No Blanks. Full credit for correct answers and work shown. credit for incorrect answers and work...

i need some one toanswering these three questions. make sure to include apa format for the information pretty straight forward. Attached below are the chapters. Chapter 7: 7.2 #2 (p. 168) Chapter 8:...

Chapter 7:7.2 #2 (p. 168) Chapter 8:8.2 #3 (p. 205) Chapter 9:9.2 #1 (p. 225) a., b., and c. (for c., only answer the adjustable rate mortgage part Chapter 7 from Personal Finance was adapted by The...

Suppose that Grover consumes two goods, cookies and milk. Grovers income expansion path is shown in the diagram below. Use the information in the diagram to explain whether each of the statements...

2 Two parallel plates A and B are joined together to form a compound plate (figure 28-W3). The thicknesses of the plates are 40 cm and 2.5 cm respectively and the area of cross section is 100 cm for...

Which of the following is FALSE regarding the release price? Multiple Choice It is usually calculated to pay off the loan when the lisst list is sold. It is usually calculated to poy off the lomn...

What insights did you gain about Jesus and his way of leading leaders from the instructions he gave the seventy-two and his debriefing conversation after they returned? [Your Response Here]

If the demand for bread at this supermarket is 30,000 loaves per year, what strategy should be adopted for acquiring bread? Both Machine A and Machine B are capable of meeting annual demand. a....

In planning a small two-story office building, the architect has submitted two designs. The first provides foundation and structural details so that two additional stories can be added to the...

Two electric motors are being economically evaluated for use in a submersible robotic device. Each is capable of delivering 90 horsepower to a necessary application that the device performs. Data for...

Use our article below to use the following questions in your critique. Stephens J. D, Yager, A. M, & Allen J. (2017). Smartphone technology and text messaging for weight loss in young adults(Links to...

Suppose the following bond quotes for IOU Corporation appear in the financial page of todays newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2015. What is the...

i will pay you more to do this For this project, you will need to use the finance formulas introduced over the next two weeks to accurately price out multiple purchases and accounts using a realistic...