Question: Problem 5-32 Compound Frequency (LG5-7) Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $496

Problem 5-32 Compound Frequency (LG5-7) Payday loans are very short-term loans

Problem 5-32 Compound Frequency (LG5-7) Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $496 in two weeks. What is the compounded annual rate implied by this 24 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 %

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