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Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $220 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 $220 in one week. What is the effective annual rate (EAR) implied by this 10 percent rate charged for only one week?

4,198%

14,104%

45,602%

None of these are correct.

1,164%

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