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would appreciate it if there is a step by step solution with the keys to the calculator, also make it as clear as possible,, thank
would appreciate it if there is a step by step solution with the keys to the calculator, also make it as clear as possible,, thank you
A cheque-cashing store is in the business of making personal loans to walk up customers. The store makes only one-week loans at 8% interest per week. a. What APR must the store report to its customers? What EAR are customers actually paying? b. The cheque- cashing store also makes one- month add on interests at 8% discount interest peer week. Thus if you borrow $100 for one month (four weeks) the interest will be (1001.08 ) =100=36.05. because this is discount interest your loan proceeds today will be $63.95. you must then repay the store $100 at the end of the month. To help you out, though, the store lets you pay off this $100 in installments of $25 per week. What is the APR of this loan? What is the EAR Step by Step Solution
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