What rate should the shop report
Problem
Big Show's Pawn Shop charges an interest rate of 28.1% per month on loans to its customers. Like all lenders, Big Show must report an APR to consumers.
a) What rate should the shop report?b) What is the effective annual rate?
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Big Show's Pawn Shop charges an interest rate of 28.1% per month on loans to its customers. What rate should the shop report? What is the effective annual rate?
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