Do you need cash fast? Your local PayDay Cash Advance Store willcash your personal check...

Do you need cash fast? Your local PayDay Cash Advance Store will cash your personal check today and hold it until your next payday.” So, in effect, you get a short-term loan for a fee. Suppose that “your local PayDay Cash Advance Store” charges $15.00 per cash advance, the average cash advance is $500, and the average loan term is two weeks. What is the EAR on the average loan?

34.87 Percent

76.87 Percent

115.66 Percent

143.54 Percent

None of the Above

Expert Solution

jeff jeffy answered 2 years ago

Payday loans (Links to an external site.), a cash advance on aperson’s paycheck, are a...

Payday loans (Links to an external site.), a cash advance on a person’s paycheck, are a form of credit that only require income and a bank account. The borrower typically agrees to pay a fee, which acts like an interest rate, to the lender and is required to repay the loan at the time of his or her next paycheck. Recently, the government and private companies have added to the debate over payday loans.Part 1: The typical payday loan comes...

A check-cashing store is in the business of making personal loans to walk-up customers. The store...

A check-cashing store is in the business of making personal loans to walk-up customers. The store makes only one-week loans at 7.3 percent interest per week. a. What APR must the store report to its customers? What EAR are customers actually paying? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Annual percentage rate % Effective annual rate % b. Now suppose the store makes one-week loans at...

Payday loan. You borrow $500 to buy gifts for your children. In two weeks, you need...

Payday loan. You borrow $500 to buy gifts for your children. In two weeks, you need to pay $650. What would be your interest rate over that two week period, and what would your Annual Percentage Rate be for the year? How much profit would the PayDay Lender make in a year if they made that same loan with the same $500 every two weeks assuming 100% collections and money out on that original $500? If the lender had $100,000...

1.A check-cashing store is in the business of making personal loans to walk-up customers. The store...

1.A check-cashing store is in the business of making personal loans to walk-up customers. The store makes only one-week loans at 7.1 percent interest per week. a. What APR must the store report to its customers? What EAR are customers actually paying? (Round your answers to 2 decimal places. (e.g., 32.16)) Annual percentage rate % Effective annual rate % b. Now suppose the store makes one-week loans at 7.1 percent discount interest per week. What’s the APR...

A) If you are sitting at your desk how fast do you need to throw an eraser so that it hits the ceiling?

A) If you are sitting at your desk how fast do you need to throw an eraser so that it hits the ceiling? B) Calculate how high you could throw a ball. C) If you dropped a coin from our classroom window, how long would it take to hit the ground? D) Make up your own question. Find the details of an object moving horizontally and use those numbers to calculate the acceleration of that object.

You take a $1,000 post-dated check to a “PayDay” lender. The lender charges you a $10...

You take a $1,000 post-dated check to a “PayDay” lender. The lender charges you a $10 application fee and loans you $975. The check matures five (5) days after you allow the lender to possess it. What is the APR for this loan if you only use this service one time? What is the APR (and APY) if you use this service over and over such that you repeated 73 times in the year?

You take a $1,000 post-dated check to a “PayDay” lender. The lender charges you a $10...

You take a $1,000 post-dated check to a “PayDay” lender. The lender charges you a $10 application fee and loans you $975. The check matures five (5) days after you allow the lender to possess it. What is the APR for this loan if you only use this service one time? What is the APR (and APY) if you use this service over and over such that you repeated 73 times in the year?

Question

Do you need cash fast? Your local PayDay Cash Advance Store willcash your personal check...

Solutions

Expert Solution

Related Solutions

Payday loans (Links to an external site.), a cash advance on aperson’s paycheck, are a...

A check-cashing store is in the business of making personal loans to walk-up customers. The store...

Payday loan. You borrow $500 to buy gifts for your children. In two weeks, you need...

1.A check-cashing store is in the business of making personal loans to walk-up customers. The store...

A) If you are sitting at your desk how fast do you need to throw an eraser so that it hits the ceiling?

You take a $1,000 post-dated check to a “PayDay” lender. The lender charges you a $10...

You take a $1,000 post-dated check to a “PayDay” lender. The lender charges you a $10...

how do you check if there is a market for your product

What do you do at your store or think that you should do to ensure that...

How much do you need when you retire to provide a $2,500 monthly check that will...