Question
(8 marks) A payday loan is quick cash advance that the borrower pays back from his or her next paycheck or within 30 days. It
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(8 marks) A payday loan is quick cash advance that the borrower pays back from his or her next paycheck or within 30 days. It is basically a short-term, unsecured loan with high interest rate. Consider a payday loan of $1,000 to be paid back with $1,025 in one week. What is the annual interest rate on this loan?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
