Question
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $ 30$30 fee for
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a
$ 30$30
"fee" for a two-week
$ 200$200
payday loan (when you repay the loan, you pay
$ 230$230).
What is the effective annual interest rate for this loan?
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Managerial Finance Essentials
Authors: Charles O. Kroncke, Alan E. Grunewald, Erwin Esser Nemmers
2nd Edition
0829901590, 978-0829901597
