Answered: Big Dom’s Pawn Shop charges an interest…

Big Dom’s Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. What rate should the shop report?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter6: Using Credit

Section: Chapter Questions

Problem 8FPE

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Big Dom’s Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. What rate should the shop report?

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