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Sarcosuchus Corporation offers very short-term loans to applicants with low credit ratings. They charge an interest rate of 0.03333 percent per hour.
Problem a. If you borrow $100 from Sarcosuchus, how much will you owe in one week?
Problem b. If you borrow $100 from Sarcosuchus, how much will you owe in one month (30 days)?
Problem c. What annual rate is Sarcosuchus charging? Hint: Convert the simple hourly rate of 0.03333 percent into simple annual rate.
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