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What is the ear of the loan under daily compounding

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Reference no: EM133122849

A lender offers the following "interest-free" payday loan: you can borrow $500 for 14 days with no interest payments, but a 10% "administration charges" will be deducted from your principal (that is, you will receive 90% of the amount you borrow but need to pay back 100%). What is the EAR of the loan under daily compounding?

Reference no: EM133122849

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