. Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $225 in two weeks. What is the compound annual rate implied by this 12.5 percent rate charged for only two weeks

2239%

Explanation:

The compound annual can be determined by converting this 12.5% in two weeks to an effective annual rate  as below:

Effective annual rate=(1+12.5%/2)^52-1

By dividing by 2 we are reducing 12.5% to a weekly rate

By raising to the power of 52, we are expressing the weekly rate in annual terms.

Effective annual rate=(1+12.5%/2)^52-1=(1.0625 )^52-1

Effective annual rate=23.39401767 -1=2239%

c.

clarify customers’ doubts only when asked.

false! basically!

i hope i'm correct.