Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Payday loans are very short - term loans that charge very high interest rates. You can borrow $200 today and repay $225 in two weeks.

Payday loans are very short - term loans that charge very high interest rates. You can borrow $200 today and repay $225 in two weeks. What is the compound annual rate implied by this 12.5 percent rate charged for only two weeks?

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

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Finance questions

Question

The Uniform Commercial Code is an example of a ( n )

Answered: 1 week ago