Cash Advance/Borrowed Interest Rate for Total Amout Due After 2 Amount 2-Week Loan (%) APR Interest and Fees ($) Weeks Loan #1 $500.00 15.00% 3. Loan #2 Loan #3 Loan #4 Loan #5 6. $15/ $100 *This rate will be the same Intere st rate x 26 *There are 26, 2-week periods in a year. 7 Lily will roll over her total throughout the duration of Borrowed amount x 2-week intere st rate Borrowed amount+ in terest & fees Calculation Tips loan amount five smes. the loan. Original Loan Amount: Total Amount Repaid: 10 Total Amount of Interest Paid: 11
Cash Advance/Borrowed Interest Rate for Total Amout Due After 2 Amount 2-Week Loan (%) APR Interest and Fees ($) Weeks Loan #1 $500.00 15.00% 3. Loan #2 Loan #3 Loan #4 Loan #5 6. $15/ $100 *This rate will be the same Intere st rate x 26 *There are 26, 2-week periods in a year. 7 Lily will roll over her total throughout the duration of Borrowed amount x 2-week intere st rate Borrowed amount+ in terest & fees Calculation Tips loan amount five smes. the loan. Original Loan Amount: Total Amount Repaid: 10 Total Amount of Interest Paid: 11
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- Using THIS spreadsheet,,, calculate the total cost of Lily taking this Payday Loan. As you know, short-term loans are rarely short-term. Many borrowers renew or refinance their loan because they do not have the funds to pay it off on the due date. For this example, assume Lily renews her loan amount five times.
Transcribed Image Text:Calculate Lily's Payday Loan * A
* Share
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A1
A
B
D
E
F
G
H
J
Cash
Advance/Borrowed
Interest Rate for
Total Amout Due After 2
Amount
2-Week Loan (%)
APR
Interest and Fees ($)
Weeks
2
Loan #1
$500.00
15.00%
Loan #2
4
Loan #3
5
Loan #4
6.
Loan #5
$15/ $100
*This rate will be the same
throughout the duration of
the loan.
Interest rate x 26
7
*There are 26, 2-week
periods in a year.
Borrowed amount x
Borowed amount+
Lily will roll over her total
loan amount five imes.
Calculation Tips
2-week intere st rate
interest & fees
8
Original Loan Amount:
10
Total Amount Repaid:
Total Amount of
Interest Paid:
11
12
13
14
15
16
17
18
19
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