Steven Is Beginning a New Job but Has Not Yet

question 58

Multiple Choice

Steven is beginning a new job but has not yet been paid. He needs $400 to pay his rent this month. Steven is going to borrow the money through a Payday Loan establishment. They are charging him an $80 fee to borrow the money for 10 days until he receives his first paycheck. What is the actual interest rate that Steven is being charged?

• A) 7.3%
• B) 73.0%
• C) 730.0%.
• D) .073%
• E) none of the above

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Definitions:

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, indicating the level of volatility.

Probability Distribution

A statistical analysis function that maps out all prospective values and their probabilities for a random variable within an established scope.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, commonly used in finance to assess the volatility of an investment's returns.