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31. Fees You are expecting a tax refund of $1,000 in 4 weeks. A tax preparer offers you a $1,000 loan for a fee
31. Fees You are expecting a tax refund of $1,000 in 4 weeks. A tax preparer offers you a $1,000 loan for a fee of $50 to be repaid by your refund check when it arrives in 4 weeks. Thinking of the fee as interest, what weekly sim- ple interest rate would you be paying on this loan? What is the corresponding annual rate? [HINT: See Example 5.]
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International Financial Reporting and Analysis
Authors: David Alexander, Anne Britton, Ann Jorissen
5th edition
978-1408032282, 1408032287, 978-1408075012
