A check-cashing store is in the business of making personalloans to walk-up customers. The store makes only one-week loans at7.3 percent interest per week.

  

a.	What APR must the store report to its customers? What EAR arecustomers actually paying? (Do not round intermediatecalculations. Enter your answers as a percent rounded to 2 decimalplaces, e.g., 32.16.)

  

Annual percentage rate	%
Effective annual rate	%

  

b.	Now suppose the store makes one-week loans at 7.3 percentdiscount interest per week. What’s the APR now? The EAR?(Do not round intermediate calculations. Enter your answersas 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 interestloans at 7.3 percent discount interest per week. Thus if you borrow$100 for one month (four weeks), the interest will be ($100 ×1.0734 ) – $100 = $32.56. Because this is discountinterest, your net loan proceeds today will be $67.44. You mustthen repay the store $100 at the end of the month. To help you out,though, the store lets you pay off this $100 in installments of $25per week. What is the APR of this loan? What is the EAR?(Do not round intermediate calculations. Enter your answersas a percent rounded to 2 decimal places, e.g.,32.16.)

  

Annual percentage rate	%
Effective annual rate	%