You traveled overseas and a bank offered to give you a loan at 20%, which you though it acceptable. You asked to borrow $50,000 for one year. Your interest charges would be $10,000 for the year, so you expected to pay $60,000 at the year end. However, the bank ask you to make weekly payment of $60,000/52, or $1,154/week. What's the true APR & EAR?

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EAR APR APR m 1EAR1m 1 APR EAR EAR ... View the full answer