What is the 10-day interest rate implied by the loan what
Jack borrows $80 from a payday lender. After ten days, Jack must repay $111.20, which includes a “fee”. Assume 360 days per year
a. What is the 10-day interest rate implied by the loan?
b. What is the implied APR?
c. What is the implied EAR?
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jack borrows 80 from a payday lender after ten days jack must repay 11120 which includes a ldquofeerdquo assume 360
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