Sarcosuchus Corporation offers very short-term loans to applicants with low credit ratings. They charge an interest...
Sarcosuchus Corporation offers very short-term loans to applicants with low credit ratings. They charge an interest rate of 0.03333 percent per hour. a. If you borrow $100 from Sarcosuchus, how much will you owe in one week? b. If you borrow $100 from Sarcosuchus, how much will you owe in one month (30 days)? c. What annual rate is Sarcosuchus charging? Hint: Convert the simple hourly rate of 0.03333 percent into simple annual rate.
Homework Answers
a.
The amount in one week is calculated below:
Money owe after 1 week is $105.59 or $106.
b.
The amount in one month is calculated below:
Money owe after 1 month is $123.99 or $124.
c.
Annual rate is calculated below:
Annual rate is 291.97%.
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