contestada

Payday loans are very short-term loans that charge very high interest rates. You can borrow $250 today and repay $325 in two weeks. What is the compounded annual rate implied by this 30 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.)

Respuesta :

Loan amount = $250

Duration = 2 weeks ( 14days)

Interest = 30%

Therefore $250 + $75 x 2

= $400 ( A month)

Going by annual

$400 × 12

= $4,800

Otras preguntas