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Payday loans are very short-term loans that charge very high interest rates. You can borrow $300 today and repay $405 in two weeks. What is
Payday loans are very short-term loans that charge very high interest rates. You can borrow $300 today and repay $405 in two weeks. What is the compounded annual rate implied by this 35 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.
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