Question: In early 2013 typical terms on a payday loan involved
In early 2013, typical terms on a payday loan involved a $15 charge for a two-week payday loan of $100. Assuming there are twenty-six 14-day periods in a year, what is the effective annual rate on such a loan?
Relevant QuestionsTerwilliger received $12,345 for his services as financial consultant to the mayor’s office of his home-town of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any ...If you were offered $1,079.50 ten years from now in return for an investment of $500 currently, what annual rate of interest would you earn if you took the offer?Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays 8.0 percent interest compounded annually, or into Burns National Bank, which pays 7.8 percent compounded ...To pay for your child’s education, you wish to have accumulated $15,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent ...On December 31, Beth Klemkosky bought a yacht for $50,000. She paid $10,000 down and agreed to pay the balance in 10 equal annual installments that include both the principal and 10 percent interest on the declining ...
Post your question