Ricky Ripoy's Pawn Shop charges an interest rate of 12% per month on loans to its...

Question

Question

Ricky Ripoys Pawn Shop charges an interest rate of 12% per month on loans to its customers. a. What is the Annual Percentage

Answer 1

Answer #1

a APR 12*Monthly Interest rate 12*12% 1.44 144.00% b EAR (1+(APR/m))^m-1 (1+1.44/12))^12-1 2.895975993 289.60%

Answer 2

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