Question 12 (1 point) a For a one-month payday loan of $200, suppose the origination...
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Question 12 (1 point) a For a one-month payday loan of $200, suppose the origination and servicing cost is $5, and r-.01 (per month). If the risk of default is 5% and the recovery rate is 10%, then what is the dollar fee required to provide the lender with their required expected return? Use the formula from the chapter. $18.26 $14.57 $16.43 $17.74 $15.89 $17.11
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