According to an article in the maclean''s magazine

Reference no: EM13850219

According to an article in the Maclean's magazine, "Cable, satellite and wireless companies may be charging illegal late fees. Companies may calculate a compounded late-fee rate of two percent a month. However, because they charge even if a customer is late by one week, that can mean an effective annualized interest rate above the maximum allowed by the Criminal Code: 60 percent." (Maclean's November 28, 2005, p.16.)

1) Calculate the annualized interest rate these companies are charging if the penalty is two percent a month.

2) What if the penalty was two percent a week?

Reference no: EM13850219

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