Payday loans issued by banks are often referred to as direct deposit advances. In early 2013, the

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Payday loans issued by banks are often referred to as “direct deposit advances.” In early 2013, the average direct deposit advance charged $10 for a $100 advance and was due in 10 days. What is the effective annual rate on this type of loan?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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Question Posted: Oct 31, 2014 07:25 AM

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Payday loans issued by banks are often referred to as direct deposit advances. In early 2013, the

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Financial Management Principles and Applications

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