A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed

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A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an overdraft occurs.

a. What amount of interest would the customer pay for a $188 overdraft? (Assume the interest is for the full amount borrowed for whole year.)

b. How much would be saved by using the overdraft protection loan if a customer has three overdraft charges of $30 each during the year?

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Focus On Personal Finance

ISBN: 9780077861742

5th Edition

Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart

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Question Posted: Nov 20, 2018 12:07 PM

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A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed

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