The 391% mentioned is an annual nominal rate [15% (365/14)]. Should the 2-week rate (15%) be

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The 391% mentioned is an annual nominal rate [15% × (365/14)]. Should the 2-week rate (15%) be compounded to calculate the effective annual interest rate?

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Principles of Managerial Finance

ISBN: 978-1408271582

Arab World Edition

Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix

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Question Posted: Dec 16, 2016 12:46 PM

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The 391% mentioned is an annual nominal rate [15% (365/14)]. Should the 2-week rate (15%) be

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No the rollover fee is a simple 15 per 2week period In other wo...View the full answer

Principles of Managerial Finance

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