Short-term loan charges 2.05% Interest per day. APR: EAR:

Short-term loan charges 2.05% Interest per day.

APR:

EAR:

Solutions

Expert Solution

APR = Interest rate per day*Number of days in an year

APR = 2.05*365 = 748.25% per year

EAR = ((1+Interest rate per day)^(Number of days in an year))-1

EAR = ((1+0.0205)^(365))-1 = 1646.21%

jeff jeffy answered 2 years ago

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