Look at the Focus on Ethics box (How Fair Is Check Into Cash) in Chapter 5 of

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Look at the Focus on Ethics box ("How Fair Is Check Into Cash") in Chapter 5 of the textbook. These, businesses quote an interest rate of 15% to loan customers (most of whom are fairly unsophisticated) and yet the EAR of the loan is close to 400%. Explain the wide discrepancy between these rates. What do you believe is the correct regulatory response to these types of lenders? Discuss in detail.

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Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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