please read and address the questions below and I will be sure to like good responses. thanks in advance. this is the second time I am posting this question.

Jacquelyn has selected a Payday Lender with fees above those offered to sub-prime borrowers approved for credit cards or other forms of unsecured lending. Once a month Jacquelyn visits a lender willing to offer her an advance on her paycheck. Jacqulyn insists this allows her to meet obligations, including rent and cost of prescriptions, that she would not be able to meet otherwise. Interest rates are compounded daily at a set percentage and, measured annually, may reach above 1,500%. Jacquelyn does not live in a state that caps interest rates. Jacquelyn has had numerous adverse credit events in the past, however her current lenders fees and other conditions offer enough of a guarantee to allow this lender to extend necessary credit. Because of the high financing costs paid currently, in part, Jacquelyns credit is unlikely to improve in the short term. She has been unable to stay current on student loan repayments. Her income has not grown as expected and has been unstable. She has taken temporary positions to supplement her income and is still looking for work in her field. Based upon this modules required reading, explain briefly how interest rates for borrowers, including high-interest borrowers like Jacquelyn, are determined. Identify and analyze one benefit sub-prime borrowers like Jacquelyn or society receives from high-interest borrowing. Recognizing that some states set interest rate maximums, identify and analyze one cost or negative effect that borrowers, including sub-prime borrowers like Jacquelyn, or society suffers as a result of high-interest borrowing.

1. Why might firms or commercial or non-profit entities, including municipalities or governments conceivably turn to high-interest borrowing?

2. Comment on limitations of lending to individuals and other entities with poor credit

1. Briefly discuss why firms issue financial statements, considering any one category of user interested in these statements.
2. Using any one type of financial ratio as an illustration, explain how financial statements offer a picture of a firms ability to serve as a good manager of invested funds.
3. Discuss any one financial ratio that a financial institution might use to evaluate the the suitability of an applicant for a personal loan (as an example of one ratio, search for the term "debt-to-income ratio").
4. Discuss the similarities between a corporate income statement and balance sheet and the documentation required of a mortgage loan applicant.