PayDay Loans wants to earn an effective annual return on its consumer loans of 18 percent per year.The bank uses daily compounding on its loans.What interest rate is the bank required by law to report to potential borrowers?
A) 16.23 percent
B) 16.56 percent
C) 17.62 percent
D) 18.39 percent
E) 18.88 percent
Correct Answer:
Verified
Q107: Alfa Life Insurance Co.is trying to sell
Q108: Compass Bank is offering 0.8 percent compounded
Q109: Given an interest rate of 5.85 percent
Q110: You have just purchased a new warehouse.To
Q111: If the appropriate discount rate for the
Q113: If today is year 0,what is the
Q114: You want to borrow $40,000 from your
Q115: Billingsley,Inc.is borrowing $60,000 for five years at
Q116: You want to buy a new sports
Q117: Explain the similarities and differences among an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents