ayday lender needs to earn an expected 24 percent APR to cover her own costs, and she knows that 35 percent of the loans she makes will never be paid back. Given this information, what is the minimum monthly interest rate the lender must charge to all borrowers? Select answer from the options below 36.92 percent 68.57 percent 30.77 percent 28.56 p
ayday lender needs to earn an expected 24 percent APR to cover her own costs, and she knows that 35 percent of the loans she makes will never be paid back. Given this information, what is the minimum monthly interest rate the lender must charge to all borrowers? Select answer from the options below 36.92 percent 68.57 percent 30.77 percent 28.56 p
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
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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A payday lender needs to earn an expected 24 percent APR to cover her own costs, and she knows that 35 percent of the loans she makes will never be paid back. Given this information, what is the minimum monthly interest rate the lender must charge to all borrowers? Select answer from the options below 36.92 percent 68.57 percent 30.77 percent 28.56 percent
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