Question
A loan shark in a student residence lends money on the following terms: If I give you $50 on Monday, you owe me $60 on
A loan shark in a student residence lends money on the following terms: If I give you $50 on Monday, you owe me $60 on the following Monday. If you are not able to pay back, the amount of money you owe to me will compound."
a) What is the nominal interest rate per year the loan shark is charging?
(b)What is the effective interest rate per year the loan shark is charging?
(c)How much money would you owe to the loan shark if you delay repaying capital and interest to him for one year (52 weeks)?
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
