单选题
A local loan shark offers 4 for 5 on payday. What it involves is that
you borrow $ 4 from him and repay $ 5 on the next payday (one week later). What
would the stated annual interest rate be on this loan, with weekly compunding?
What is the effective annual interest rate on this loan? Assume 52 weeks in one
year, and select the answer closest to your numbers.
Stated Interest Rate Effective Interest
Rate
①A. 25%
300%
②B.
25% 1300%
③C. 1300%
10947544%