Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Life-leech payday lenders offers 7-day loans at 333% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so

Life-leech payday lenders offers 7-day loans at 333% APR compounded daily.

Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 13% effective weekly rate (EWR).

This amount would be on top of the agreed loan rate.

If you were to borrow $2600.69 and held it for 18 months, without ever paying the principal, what would be your balance owing?

You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000

Answer = ??

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions