Businesses quote an interest rate of 15 to loan customers, Ask an Expert

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Businesses quote an interest rate of 15% to loan customers (most of whom are fairly unsophisticated) and yet the EAR of the loan is close to 400%. Explain the wide discrepancy between these rates. What do you believe is the correct regulatory response to these types of lenders??

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92427475

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