Rick Needs an Advance on His $600 Bi-Weekly Paycheck

question 83

Multiple Choice

Rick needs an advance on his $600 bi-weekly paycheck. He goes to Cash King where he writes them a check for $690 and dates the check two weeks from today. The cost of financing Rick's payday loan is

• A) 391%.
• B) 521%.
• C) 261%.
• D) 547%.

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Definitions:

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income, indicating how changes in income affect spending.

Consumption Function

A financial equation that depicts the correlation between overall spending and gross national income.

Consumer Expectations

Consumer Expectations refer to the perceptions and predictions of future financial conditions or performances, which influence consumer behavior in the economy.

Net Wealth

Net wealth represents the total value of all financial and non-financial assets owned by an individual, corporation, country, or other entity, minus any liabilities.