Question
4 pts Elmer received a $75,000 loan from a loan shark. The loan required him to make payments of $1000 per week (52 weeks per
4 pts
Elmer received a $75,000 loan from a loan shark. The loan required him to make payments of $1000 per week (52 weeks per year) for three years. What annual rate (APR) and effective annual rate (EAR) did the loan charge?
| APR does not exist; EAR does not exist |
| APR 47.90%; EAR 61.10% |
| APR 56.48%; EAR 61.10% |
| APR 47.90%; EAR 75.37% |
| APR 56.48%; EAR 75.37% |
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
3rd Edition
0123865492, 9780123865496
