Reputable Payday Loans (RPL) quoted Joe three loan arrangements for a $1,000 loan. The first is to pay back the loan in equal weekly payments.5% interest per week. A second is to pay it back in equal semi-monthly payments (on the 15th and 30th) at 1% semi-monthly interest. A third option is to pay it back in equal monthly payments at 2% monthly interest. Compounding of interest is weekly, semi-monthly and monthly respectively for each arrangement. What is the effective annual rate for each alternative? What is the annual percentage rate for each arrangement?
Paper#28573 | Written in 18-Jul-2015Price : $22