Question
You have agreed to loan some money to a friend at a simple interest rate of 195% per year. Your friend hasn't taken this class;
You have agreed to loan some money to a friend at a simple interest rate of 195% per year. Your friend hasn't taken this class; all they know is that they can pay you back $500 in 6 weeks.
How much money do you give your friend today so that the repayment of $500 in 6 weeks is equivalent to a simple interest loan with a rate of 195% per year? Round your answer to the nearest dollar.
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
