Question
Assume the following: Rapid cash lends Mr Brown $ 300 for one month.Mr Brown pays them back $ 313.99. The details of the billing are
Assume the following: Rapid cash lends Mr Brown $ 300 for one month.Mr Brown pays them back $ 313.99. The details of the billing are 3% fee for cash advance ie $ 9.00 and a 20.23% APR ie $ 300 * .2023 * 30/ 365 = $ 4.99.
The total itemize charges for the repayment $ 300.00 principal repayment
9.00 Cash advance fee 4.99 Interest for 30 daysTotal $ 313.99
Calculate the APR which Mr Brown paid for the 30 day loan. Comment on whether this loan legally or morally constitutes usury?
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
Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
