Payday loans are very short-term loans that charge very high interest rates. You can borrow $240 today
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Question:
Payday loans are very short-term loans that charge very high interest rates. You can borrow $240 today and repay $300 in two weeks. What is the compounded annual rate implied by this 25 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to 2 decimal places.) Compounded annual rate?
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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