Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
a. How long will it take a $30,000 investment to grow to $34,000 if it earns 7% compounded quarterly (assume that a quarter year has
a. How long will it take a $30,000 investment to grow to $34,000 if it earns 7% compounded quarterly (assume that a quarter year has 91 days)?
b. For loans of one month, a payday loan business charges 1.6% of the amount borrowed as interest, plus a processing fee of $2.25 per $1000 borrowed. Is the business breaking the law by exceeding the legislated cap of an effective interest rate of 24% if processing fees are considered interest under the law?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started