Question
A payday loan servicer has a stated APR of 27.31%. In reading the fine print on the loan you see that the loan compounds interest
A payday loan servicer has a stated APR of 27.31%. In reading the fine print on the loan you see that the loan compounds interest daily. Given this information, what is the EAR on the loan? Answer as a PERCENTAGE to two decimals.
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
Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
