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Payday loans are very short -term loans that charge very high interest rates. You can borrow $500 today and repay $525 in two weeks. What
Payday loans are very short -term loans that charge very high interest rates. You can borrow $500 today and repay $525 in two weeks. What is the compound annual rate that is implied by this 5 percent rate charged for only two weeks? ( Hint: Calculate the EAR)
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