FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $31 fee for a

image text in transcribed

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $31 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $231). 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Focus On Personal Finance

Focus On Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

3rd Edition

0073382426, 9780073382425

More Books

Students also viewed these Finance questions

Question

★★★★★
a. Define the term osmophile and provide examples of osmophilic microbes living in the environment and on the human body. b. Opening the last jar of strawberry jam that he processed at home last...

Answered: 1 week ago

Question

★★★★★
Identify the graph of each equation without completing the squares. x 2 + y 2 8x + 4y = 0

Answered: 1 week ago

Question

★★★★★
Briefly define Galens constitutional types.

Answered: 1 week ago

Question

★★★★★
Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Food Unlimited Company, a restaurant supply company that uses the allowance method of...

Answered: 1 week ago

Question

★★★★★
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par...

Answered: 1 week ago

Question

★★★★★
The interest rate on a $14,700 loan is 9.1% compounded semiannually. Semiannual payments will pay off the loan in eight years. (Do not round intermediate calculations. Round the PMT and final answers...

Answered: 1 week ago

Question

★★★★★
Timber Log Homes Ltd. (Timber) has produced log home kits in its current location of Langley, British Columbia, since 1987. Until recently, Dean Fortin, the chief operating officer, was the sole...

Answered: 1 week ago

Question

★★★★★
Find the annual depreciation using SYD method. A Computer Company has purchased some computers worth $5,000,000. It cost them $200,000 to transport the Computer to their location. The Company...

Answered: 1 week ago

Question

★★★★★
Jennifer Lopez owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Jennifer made written offers to sell the four boats in the order named for $4,200 each to Aiden,...

Answered: 1 week ago

Question

★★★★★
Following the discovery of the collapsed storage racking, no one secured the scene. (a) Why is it important to secure the scene of this near miss? Note: You should support your answer, where...

Answered: 1 week ago

Question

★★★★★
From information below work out the Total Control Cost (TCC) = _$____________ Annual expected savings: $550 Combined control effectiveness: 50% Annual covered loss: $950

Answered: 1 week ago

Question

★★★★★
What contribution can a set of best HR practices make to this organization?

Answered: 1 week ago

Question

★★★★★
Appreciate the different approaches to studying HRM Using one of the five major HRM models, identify which aspects of the case illustrate traditional personnel management and HRM approaches.

Answered: 1 week ago

Question

★★★★★
How would you go about selecting a manager for a new location in Mexico? For instance, would you hire someone locally or send someone from one of your existing stores to live down in Mexico? What...

Answered: 1 week ago

Previous Question Next Question