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Payday loans are very short-term loans that charge very high interest rates. You can borrow $240 today and repay $300 in two weeks. What is
Payday loans are very short-term loans that charge very high interest rates. You can borrow $240 today and repay $300 in two weeks. What is the compounded annual rate implied by this 25 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to the nearest whole percent.)
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