Question: I'm having trouble with this problem. Step-by-step for how to solve would be appreciated. Thanks in advance! A payday loan is structured to obscure the

I'm having trouble with this problem. Step-by-step for how to solve would be appreciated. Thanks in advance!

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $31 "fee" for a two-week $190 payday loan (when you repay the loan, you pay $221). What is the effective annual interest rate for this loan?(Assume 26 bi-weekly periods per year.)

The effective annual interest rate is

____________________%. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

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...

having trouble getting this one.. i tried dividing 230/200 to get an r of 15%. then put it into EAR=(1+r)^m-1 and it gave me 36.86% which is not correct. if yu solve it can you please show the...

Please note decimal places, thanks! A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $26 "fee" for a two-week $215 payday loan (when...

Please solve without using excel, thankyou?! A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $ \$ 26 $ "fee" for a two-week \( \$...

Hi Katrina, I have another accounting problem I need your help with. It's similar to the one you did on 4/4/2016. The due date for this one will be 4/10/2016, Will you be able to help? See below...

I need help with the attached homework assignment. Any assistance would be greatly appreciated. Thanks! Case Cartwright Lumber Company Learning Objectives Following the Wk1 assignment on financial...

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

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...

Relationship between economic system and natural system based on 1 circular flow model 2 material balance model

The taxpayer company, a private corporation, owned and operated a small shopping centre from which it received rental income. There were seven separate tenants, only one of them being what is...

7 . While performing a substantive test of details during an audit, the auditor determined that the sampl account balance was materially misstated. It was, in fact, not materially misstated. This...

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.