In the poor areas of many cities around the world we find, Finance Basics

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In the poor areas of many cities around the world we find

Question: In the poor areas of many cities around the world, we find people offering `pay-day' loans. One loan agency in Dacca offers to loan Gita $20 till her pay cheque arrives in two weeks time. When it arrives, she must pay back the $20 plus a $3 service charge. What is the effective annual interest rate she is paying on the loan?

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Finance Basics: In the poor areas of many cities around the world we find

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Finance Basics: In the poor areas of many cities around the world we find

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