Question
Elmer received a $25,000 loan from a loan shark. The loan required him to make payments of $400 per week (52 weeks per year) for
Elmer received a $25,000 loan from a loan shark. The loan required him to make payments of $400 per week (52 weeks per year) for three years. I do not know how to come to the answer below.
What annual rate (effective annual rate) did the loan charge? Answer: 74.03% (108.56%)
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
