You head over to Check-N-Go for a quick loan. The loan is for $500 and you pay it back two weeks (14 days) later. You end up paying them back $725. Assume the company compounds interest on a Weekly basis. 1a. What is the effective interest rate per year? 1b. What would you owe if you kept the money for 1 year

You head over to Check-N-Go for a quick loan. The loan is for $500 and you pay it back two weeks (14 days) later. You end up paying them back $725. Assume the company compounds interest on a Weekly basis. 1a. What is the effective interest rate per year? 1b. What would you owe if you kept the money for 1 year

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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