Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 30, 2024

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $35 fee for a

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $35 "fee" for a two-week $195 payday loan (when you repay the loan, you pay $230).

What is the effective annual interest rate for this loan? Assume 26 bi-weekly periods per year.

(Note:

Round your calculation of the the two-week interest rate to at least five decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions

Question

What are some of the topics they study?

Answered: 1 week ago

Question

★★★★★

Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnerships first...

Answered: 1 week ago

Question

★★★★★

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $48,000 a year. The company allocates these costs to the joint products on the basis of...

Answered: 1 week ago

Question

★★★★★

I know headquarters wants us to add that new product line, said Dell Havasi, manager of Billings Companys Office Products Division. But I want to see the numbers before I make any move. Our divisions...

Answered: 1 week ago

Question

★★★★★

Gator Inc. reported taxable income of $1,550,000 this year and paid federal income taxes of $325,500. Included in the company's computation of taxable income is gain from the sale of a depreciable...

Answered: 1 week ago

Question

★★★★★

Suppose your department decides to host a celebration because they exceeded sales expectations for the quarter. If you were only focused on equality, what would you do? Limit institutional barriers...

Answered: 1 week ago

Question

★★★★★

Income Statement Revenue: Collars $ 322,560 Leashes 271,040 Harnesses 312,500 Total Revenue: $ 906,100 Cost of goods sold 28,258 Gross profit $ 877,842 Expenses: General and administrative salaries $...

Answered: 1 week ago

Question

★★★★★

Determine the moment generated by the 425 N force applied at point D about point C Note: Remember Counterclockwise moments are considered positive. Justify your answer to receive full points. 215 mm...

Answered: 1 week ago

Question

★★★★★

A recruiter is using a consistent set of questions to interview candidates for retail cashier roles in locations across the US Which question ( s ) would be inappropriate to ask? Select all that...

Answered: 1 week ago

Previous Question Next Question