Question
Compute the specified quantity. You are expecting a tax refund of $1,000 in 10 weeks. A tax preparer offers you an interest-free loan of $1,000
Compute the specified quantity. You are expecting a tax refund of $1,000 in 10 weeks. A tax preparer offers you an "interest-free" loan of $1,000 for a fee of $50 to be repaid by your refund check when it arrives in 10 weeks. Thinking of the fee as interest, what simple interest rate would you be paying on this loan? (Round your answer to three decimal places.)
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Applied Financial Macroeconomics And Investment Strategy
Authors: Robert T McGee
1st Edition
1137428394, 978-1137428394
