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Payday loans are very short-term loans that charge very high-interest rates. You can borrow $200 today and repay $210 in one week. What is the
Payday loans are very short-term loans that charge very high-interest rates. You can borrow $200 today and repay $210 in one week. What is the effective annual rate (EAR) implied by this 5 percent rate charged for only one week?
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4,198%
None of these are correct.
14,104%
1,164%
45,602%
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