Question
You need a quick loan and decide to use the local payday loan office. The loan is for $400 and you pay it back 1
You need a quick loan and decide to use the local "payday" loan office. The loan is for $400 and you pay it back 1 week later (7 days). You end up paying them back $575.
Assume the company compounds interest on a DAILY basis..
1a. What is the effective interest rate per year?
1b. What would you owe if you kept the money for 1 year?
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
