Loan Duration 1 day 14 days 30 days Interest Owed $2.72 $37.88 $75.26 (a) Using the interest owed on a 1-day loan, find the equivalent annual simple interest rate for the loan. Use a 365-day year. Round answers to

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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At a payday lending company, a loan of $500 will accrue interest as follows:
Loan Duration
Interest Owed
1 day
$2.72
14 days
$37.88
30 days
$75.26
(a) Using the interest owed on a 1-day loan, find the equivalent annual simple interest rate for the loan. Use a 365-day year. Round answers to two decimal
Transcribed Image Text:At a payday lending company, a loan of $500 will accrue interest as follows: Loan Duration Interest Owed 1 day $2.72 14 days $37.88 30 days $75.26 (a) Using the interest owed on a 1-day loan, find the equivalent annual simple interest rate for the loan. Use a 365-day year. Round answers to two decimal
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