Question: In 'N Out Payday Loans advertises that for a fee of only $10, you can immediately borrow up to $200 for one month. If a

In 'N Out Payday Loans advertises that for a fee of only $10, you can immediately borrow up to $200 for one month. If a person accepts the offer, what are

(a) The nominal interest rate per year

(b) The effective rate per year?

Step by Step Solution

★★★★★

3.30 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Solution a Interest rate ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (1044).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Calculate the heat loss for a top-floor apartment and an apartment that is below the top floor, using the apartment building in Appendix A. Assume the apartment will be built at the geographical...

What nominal interest rate per year is equivalent to 11.5% per year, compounded monthly?

Accounting 1. You borrowed $10,000 at 8% nominal interest rate per annum and compounded semi-annually. How much would be the total interest payable at the end of five years if you did not make any...

What effective interest rate per year is equal to 1.2% per month, compounded continuously? Show hand and spreadsheet solutions.

You accept an offer from a Payday Loans company saying that for a fee of $ 2 0 , you can immediately borrow up to $ 4 0 0 for one month. According to this offer, what are ( a ) the nominal interest...

1. A 20-year annuity immediate pays 100 the first year and increases by 100 a year through year 10. Starting in year 11 each yearly payment is 5% greater than the previous payment. The annuity earns...

3. In A}: Lang Loans advertises that for a fee of only RM 10, you can immediately.F barrow up to RM2OD for one month. If a person accepts the nfferi determine a. the nominal interest rate per year b....

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

check the answer which i did wrong and help me change the right answer 4 points each. Show all work. No Blanks. Full credit for correct answers and work shown. credit for incorrect answers and work...

i need some one toanswering these three questions. make sure to include apa format for the information pretty straight forward. Attached below are the chapters. Chapter 7: 7.2 #2 (p. 168) Chapter 8:...

Chapter 7:7.2 #2 (p. 168) Chapter 8:8.2 #3 (p. 205) Chapter 9:9.2 #1 (p. 225) a., b., and c. (for c., only answer the adjustable rate mortgage part Chapter 7 from Personal Finance was adapted by The...

Consider the subspace W of D, given by W = span (e2x, e-2x). (a) Show that the differential operator D maps W into itself. (b) Find the matrix of D with respect to B = {e2X, e-2x}. (c) Compute the...

On January 1, 2013, Hartland Inc. paid $34,000 cash to purchase a taxi cab. The taxi had a four-year useful life and a $4,000 salvage value . Required a. Determine the amount of depreciation expense...

6. Draw Venn diagrams for the following propositions. No tax audits are pleasant experiences for cheaters.

How would each of the following scenarios affect a firm?s cost of debt, rd(1 ? T); its cost of equity, r s ; and its WACC? Indicate with a plus (+), a minus (?), or a zero (0) if the factor would...

Billy and Mandy Jones have $25,000 to invest. On average, they do not make any investment that will not return at least 7.5% per year. They have been approached with an investment opportunity that...

A project costs $2.5 million up front and will generate cash flows in perpetuity of $240,000. The firms cost of capital is 9%. a. Calculate the projects NPV. b. Calculate the annual EVA in a typical...

The income statement disclosed the following items for 2016: Depreciation expense ...........................$ 57,600 Gain on disposal of equipment ............... 33,600 Net income ............... ....

Edna Recording Studios, Inc., reported earnings available to common stock of $4,200,000 last year. From those earnings, the company paid a dividend of $1.26 on each of its 1,000,000 common shares...

Describe the making of tortellini.

If the demand for bread at this supermarket is 30,000 loaves per year, what strategy should be adopted for acquiring bread? Both Machine A and Machine B are capable of meeting annual demand. a....

In planning a small two-story office building, the architect has submitted two designs. The first provides foundation and structural details so that two additional stories can be added to the...

Two electric motors are being economically evaluated for use in a submersible robotic device. Each is capable of delivering 90 horsepower to a necessary application that the device performs. Data for...

Use our article below to use the following questions in your critique. Stephens J. D, Yager, A. M, & Allen J. (2017). Smartphone technology and text messaging for weight loss in young adults(Links to...

Suppose the following bond quotes for IOU Corporation appear in the financial page of todays newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2015. What is the...

i will pay you more to do this For this project, you will need to use the finance formulas introduced over the next two weeks to accurately price out multiple purchases and accounts using a realistic...