Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

# A check-cashing store is in the business of making personal loans to walk-up customers. The store makes only one-week loans at 7.9 percent interest...

A check-cashing store is in the business of making personal loans to walk-up customers. The store makes only one-week loans at 7.9 percent interest per week.

**a.**What APR must the store report to its customers? What EAR are customers actually paying? **(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)**

Annual percentage rate % Effective annual rate %

**b.**Now suppose the store makes one-week loans at 7.9 percent discount interest per week. What's the APR now? The EAR? **(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)**

Annual percentage rate % Effective annual rate %

**c.**The check-cashing store also makes one-month add-on interest loans at 7.9 percent discount interest per week. Thus if you borrow $220 for one month (four weeks), the interest will be ($220 × 1.0794 ) - $220 = $78.20. Because this is discount interest, your net loan proceeds today will be $141.80. You must then repay the store $220 at the end of the month. To help you out, though, the store lets you pay off this $220 in installments of $55 per week. What is the APR of this loan? What is the EAR? **(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)**

Annual percentage rate % Effective annual rate %