1. Belinda needs $2400 fast. She has the option of borrowing the $2400 for 5
days at an APR of 500% or borrowing the $2400 for 5 days with a fee of $180.
She realizes that neither scenario is very good, but she wants to choose the option
that is best for her. Help Belinda decide which is the "better" deal. (5 points: Part 1-
1 point; Part II-1 point; Part III-1 point; Part IV-1 point; Part V - 1 point)
Part I: What is the length of the period of the $2400 loan for 5 days for a fee of
$180?
Part2: what is the number of periods for one year?
Part3: what is the periodic interest rate of the 2400 loan for five days for fee of 180?
Part4: what is the APR of the 2400 loan for five days for a fee of 180?
Part5: which is the better deal borrowing the 2400 for five days and APR 500% or borrowing the 2400 for five days with a fee of 180?
