Question
You are expecting a tax refund of $5,000 in 4 weeks. A tax preparer offers you an interest-free loan of $5,000 for a fee of
You are expecting a tax refund of $5,000 in 4 weeks. A tax preparer offers you an "interest-free" loan of $5,000 for a fee of $50 to be repaid by your refund check when it arrives in 4 weeks. Thinking of the fee as interest, what simple interest rate would you be paying on this loan? HINT [See Example 6.] (Round your answer to three decimal places.)
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
16th edition
1118742974, 978-1118743201, 1118743202, 978-1118742976
