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A loan shark lends you $80 at 2% compound interest per week (this is a weekly, not an annual rate). (Round your answers to the nearest dollar.) (a) How much will you owe after 2 years? (Use 52 weeks per year.)
(b) In "street" language, the profit on such a loan is known as the "vigorish" or the "vig." Find the shark's vig.
Test using the traditional approach with α = 0.05
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