An engineering firm has to borrow funds to pay your 16, Finance Basics

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An engineering firm has to borrow funds to pay your 16

Question: An engineering firm has to borrow funds to pay your 16 weeks co-op salary for the summer. the firm borrows $500 from a bank that requires them to make a weekly payment of $40 to pay off the loan.

(a) what is the weekly interest rate?

(b) what is the nominal annual interest rate?

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