Question
The formula to calculate the amount of interest payable each month is computed as follows (where n = 12): a.Let's assume that you need $100
The formula to calculate the amount of interest payable each month is computed as follows (where n = 12):
a.Let's assume that you need $100 (which is the balance) and you can't wait until your next paycheck.You stop by My Cash Now and they tell you they can lend you $100 for 14 days and the loan fee (finance charge) is $18.62 (also considered the interest).Using the formula above, calculate the APR.
b.How does this rate compare to the other Annual Percentage Rates (APR) we have discussed and used in class?(Be sure you converted you answer above into a percent.)
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Statistical Reasoning for Everyday Life
Authors: Jeff Bennett, Bill Briggs, Mario F. Triola
4th edition
978-0321817624
