A company offers to advance you money for a small fee paid to be paid later. For every $500 of cash advanced, the company will charge a fee of $14 four weeks later. What is the effective annual rate implied by this offer. Assume that there are exactly 52 weeks in a year.

Answer rating: 100% (QA)

To calculate the effective annual rate EAR implied by this offer we need to consider the fee charged ... View the full answer