It is just the middle of the month, but you already ran out of money. You go to Soprano's Check Cashing, who loans you $500 now. In exchange, you will repay $570 a month later. What are the Annual Percentage Rate (APR) and two Effective Annual Rate (EAR) that they charge you? The answer is supposed to be 3.82, but I don't understand how we got there. This is my work.

It is just the middle of the month but you already rm = 14% The dollar return is $70. The the month percentage return is $70 divided by their investment of $500 = 14% per month. m 14% is min ow formula. We multiply You go to Soprano's this by 12 to find ow. APR. Check Cashins, who loans you $500 now. In exchange you APR = cm x m2 = 14%x12=168%. will repay month later. What are EAR=(! + Wande) Rate (APR) and the 43.82 Effective Annual 382% Rale (EAR) that they charge you $570 a 12 1 ? T = 114 11.689 12 1.1412