Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $215 in one week. What is

Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $215 in one week. What is the effective annual rate (EAR) implied by this 7.5 percent rate charged for only one week?

Group of answer choices

45,602%

4,198%

14,104%

None of these are correct.

1,164%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Essentials Of Managerial Finance

Authors: Scott Besley, Eugene F. Brigham

13th Edition

0324258755, 9780324258752

More Books

Students also viewed these Finance questions

Question

★★★★★

Compare and contrast these explanations of FDI: internalization theory and Knickerbocker's theory of FDI

Answered: 1 week ago

Question

★★★★★

Consider the five figures shown. In how many different ways can the figures be arranged a) From left to right? b) From top to bottom if placed one under the other? c) From left to right if the...

Answered: 1 week ago

Question

★★★★★

=+Dependent variable is: USGross($M) R-squared = 0.4635, Adjusted R-squared: 0.4478 s = 53.89 with 106 - 3 = 103 degrees of freedom Variable Coefficient SE(Coeff) t-ratio P-value Intercept 21.6562...

Answered: 1 week ago

Question

★★★★★

Ever since you walked through the door, your interviewee, Max Hugo, has been shuffling papers, looking at his watch, and drumming on his desk with his fingers. Based on what you know about...

Answered: 1 week ago

Question

★★★★★

How many years (and months) will it take $2 million to grow to $5.80 million with an annual interest rate of 8 percent? (Do not round intermediate calculations. Round "months" to 1 decimal place.)...

Answered: 1 week ago

Question

★★★★★

TB MC Qu. 5-81 (Static) A company makes a single product that it sells... A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a...

Answered: 1 week ago

Question

★★★★★

4.18 Consider the following CO oxidation reactions: VERVIE k CO + OH / CO+H of chemical me k 2 CO + O2 CO2 + 0, shemu where k (cm/gmol-s) = 1.17 107 T (K) 1.35 exp[+3000/RT (K)], k (cm/ ms, the...

Answered: 1 week ago

Question

★★★★★

You own a clothing store that emphasizes unique clothing and very high customer service as its competitive advantage. Sales people help customers select clothes that make them look good and fit their...

Answered: 1 week ago

Question

★★★★★

Read the following note on organisational resilience and on the basis of the motivation stipulated for the proposed study answer all questions that follow. Organisational Resilience 21st century...

Answered: 1 week ago

Question

★★★★★

You own a catering hall, and next Saturday, you have two events booked. At noon, you have a luncheon scheduled until 5:00, and then you have a Sweet 16 party, with guests scheduled to arrive at 7:00...

Answered: 1 week ago

Question

★★★★★

1. Explain the difference between manufacturing operations and service operations. 2. Provide a sample of a service organization. Reflection Activity R eflect by relating the university VMO with your...

Answered: 1 week ago

Question

★★★★★

1 What are some of the drawbacks to project- based organising? Individuals in film increasingly work on short- term projects rather than in permanent employment arrangements. The film industry is...

Answered: 1 week ago

Question

★★★★★

3 When is it a good idea to use the internal supply of labour?

Answered: 1 week ago

Question

★★★★★

5 What are the main aims of talent management?

Answered: 1 week ago

Previous Question Next Question