Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 14.5 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?

Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 14.5 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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 10P

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