Check-N-Goes offers paycheck advances, also know as a Discount loan. This type o

Question

Check-N-Goes offers paycheck advances, also know as a Discount loan. This type of loan the customers will pay the interest up front, from the money they're borrowing.

To pay the loan, the customers just need to pays the principle back. For example: Steven would borrow $500 and pay up front $50. Thus the amount he gets would be $450. To pay the loan off, Steven would pay back $500. Check-N-Goes will charge 57% up front for 20 weeks to lend out $1900.

There are 52 weeks(approximately) in a year.

What will be the time in the formula be for this calculation------------------years? (Write your answer as a fraction, a/b). How much will the customer be charged to use this money, the interest--------------------?

How much money is the customer truly borrowing with this type of loan-----------------------?

What is the true APR for this type of loan-----------------------? ( Round to the nearest 10th).

Explanation / Answer

The year usedwould be 140/360, the denominator will be constant.

Fv 867 , paid today is 1083,

Annual yield is 20 %

And interedt is 7.76%

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.