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%
【正确答案】 C
【答案解析】
Stated Weekly Rate = 5/4-1=25 %
Stated Annual Rate = 1300%
Annual Effective Interest Rate = (1+0.25)52-1=109476.44-1=109475.44