Question
If you choose to go to Rapid Refund, Inc. and get your $2000 tax refund today (time 0) rather than waiting 4 months to get
- If you choose to go to Rapid Refund, Inc. and get your $2000 tax refund today (time 0) rather than waiting 4 months to get the refund from the IRS,
(a) what effective annual interest rate do you pay for the Rapid Refund service if their fee is 10%? Hint: use the basic present value formula.
(b) What is the nominal or stated rate of interest of the service? Show all work.
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Managing The Audit Function A Corporate Audit Department Procedures Guide
Authors: Michael P. Cangemi
2nd Edition
0471012556, 978-0471012559
