Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ricky Ripov's Pawn Shop charges an interest rate of 15.75 percent per month on loans to its customers. Like all lenders, Ricky must report an

image text in transcribed
Ricky Ripov's Pawn Shop charges an interest rate of 15.75 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. a. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d a. Annual percentage rate Effective annual rate 16.94 % 189.00 $ % b

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Modern Portfolio Theory and Investment Analysis

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

9th edition

9781118805800, 1118469941, 1118805801, 978-1118469941

More Books

Students also viewed these Finance questions

Question

Explain the Neolithic age compared to the paleolithic age ?

Answered: 1 week ago

Question

What is loss of bone density and strength as ?

Answered: 1 week ago