FIN 350 Module 4 Discussion 2

FIN 350 Module 4 Discussion 2

FIN 350 Module 4 Discussion 2 FIN 350 Module 4 Discussion 2

Look at the Focus on Ethics box (“How Fair Is Check Into Cash”) in Chapter 5 of the textbook. These, 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?

FIN 350 Module 4 Discussion 2