Your friend is short on cash and thinking about using one of those payday loan places. You
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Question:
Your friend is short on cash and thinking about using one of those payday loan places. You told him it's a bad idea and you are explaining why.
The loan is for $850 and it will be paid back 11 days later. He will have to pay them back $1400. Assume the company compounds every 11 days.
2a. What is the effective interest rate per year?
2b. What would you owe if you kept the money for 1 year?
Related Book For
Contemporary Business Mathematics With Canadian Applications
ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
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