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A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $33 fee for
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $33 "fee" for a two-week $205 payday loan (when you repay the loan, you pay $238). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is %. (Round to two decimal places.)
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
