i/n = 25% --> The rate for 2 weeks
n = 26 {= 52/2 = 26 periods in year)
EAR = 330.8722 - 1
EAR = 329.8722
EAR = 32,987.22%
Problem 5-32 Compound Frequency (LG5-7) Payday loans are very short-term loans that charge very high interest...
Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $290 in two weeks. What is the compounded annual rate implied by this 45 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to the nearest whole percent.) Compounded annual rate ___________
Payday loans are very short-term loans that charge very high interest rates. You can borrow $500 today and repay $615 in two weeks. What is the compounded annual rate implied by this 23 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $250 in two weeks. What is the compound annual rate implied by this 25 percent rate charged for only two weeks?
Payday loans are very short-term loans that charge very high interest rates. You can borrow $500 today and repay $550 in two weeks. What is the compound annual rate implied by this 10 percent rate charged for only two weeks?
Problem 5-9 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 8.5 percent of a $90 payment made every year forever? (Round your answer to 2 decimal places.) Present value Problem 5-3 Future Value of an Annuity (LG5-2) What is the future value of a $990 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value Problem 5-31...
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.
Problem 4-35 Solving for Rates (LG4-7) 25 You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1700 points What return did you earn? (Negative answer should be indicated by a minus sign) Bock Retur eamed Berences What return would you need to get next year to break even overall? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Retum eamed LMR my Problem 4-32 Solving for Time (LG4-8) 2.5 points...
Problem 3-9 Current and Quick Ratios The Nelson Company has $1,755,000 in current assets and $650,000 in current liabilities. Its initial inventory level is $325,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.1? Round your answer to the nearest cent. What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?...
1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back. 2. Since 2008, when the monetary base was about $800 billion,...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...