Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week later. What is the AIR (the simple

Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week later.

What is the AIR (the simple rate) on the loan (2+ decimals)?

(Assume that there are exactly 52 weeks in a year.)

What is the effective annual rate (the right thing) on the loan(1+ decimals)?

Again assume that there are exactly 52 weeks in the year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Palgrave Macmillan Understanding Investment Funds Insights From Performance And Risk Analysis

Authors: V. Terraza , H. Razafitombo

1st Edition

1137273607,1137273615

More Books

Students also viewed these Finance questions

Question

★★★★★

A hear engine exhausts 8200J of heat while performing 32000 J of useful work. What is the efficiency of this engine?

Answered: 1 week ago

Question

★★★★★

Consider reflecting the reality that homeowners often freeze up or tremble so badly when trying to use a gun in self-defense that they are unable to deploy it.

Answered: 1 week ago

Question

★★★★★

1. Relative to the United States distribution network, calculate the cost associated with running the existing system. Assume that 40% of the volume arrives in Seattle and 60% in Los Angeles and the...

Answered: 1 week ago

Question

★★★★★

Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 Total sales 610.1 564.9 Cost of sales -500.2 -360.5 Gross profit 109.9 204.4 Selling, general, and...

Answered: 1 week ago

Question

★★★★★

Question 15 5 points Saved The monthly depreciation expense on Louis Ruiz Consulting Services computer is $250. What is the adjusting entry to record the depreciation expense? A. Dr. Computer 250;...

Answered: 1 week ago

Question

★★★★★

Answer these project management questions? What are the knowledge areas relevant to doing a project? What is RAID as it related to project management? What are the important processes for project...

Answered: 1 week ago

Question

★★★★★

Question: What happens when a thread is waiting on an objects monitor using the wait() method, and the objects notify() method is called by another thread? A) The waiting thread is immediately...

Answered: 1 week ago

Question

★★★★★

Question: What is the behavior of the final keyword when applied to a method in Java? A) It prevents the method from being inherited by subclasses. B) It prevents the method from being overridden by...

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Java interfaces is TRUE? A ) An interface can contain method implementations directly. B ) An interface can extend multiple other interfaces. C ) A...

Answered: 1 week ago

Question

★★★★★

Question: Which of the following statements about Java's final keyword is TRUE? A ) A final class cannot have any subclasses. B ) A final method cannot be overridden. C ) A final variable must be...

Answered: 1 week ago

Previous Question Next Question