Question: c. The check-cashing store also makes one-month add-on interest loans at 6.5 percent discount interest per week. Thus if you borrow $160 for one month

c. The check-cashing store also makes one-month add-on interest loans at

c. The check-cashing store also makes one-month add-on interest loans at 6.5 percent discount interest per week. Thus if you borrow $160 for one month (four weeks),the interest will be ($160 x 1.0654 ) 160 = $45.83. Because this is discount interest, your net loan proceeds today will be $114.17. You must then repay the store $160 at the end of the month. To help you out, though, the store lets you pay off this $160 in installments of $40 per week. What is the APR of this loan? What is the EAR? (Round your answers to 2 decimal places. (e.g., 32.16)) Annual percentage rate Effective annual rate 7%

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