Which payment method typically charges the highest interest rates? ACredit cards BCashier's checks CPre-paid cards DPayday loans

2 answers:

6 0

The answer is D. Payday Loans

Both credit cards and payday loans have a high interest rates, but payday loans seems a little bit higher

Credit Cards interest Rates in U.S : 7 - 36 %
Payday Loans : 12 - 30 %

lys-0071 [83]3 years ago

5 0

Option (d) is correct. Payday loans typically charges the highest interest rates.

Further Explanation:

Payday loans:

Payday loans are short-term in nature and has a high interest rate. These loans are granted in a very short period of time and the borrower pays when he/she gets his/her next paycheck. These kind of loans charge high interest rate because they are granted very quickly. The loan amount does not exceed the salary of the borrower.

Justification for the correct and incorrect options:

Credit card: This is an incorrect option.

Credit card charges interest but their rate of interest is lower than the payday loans.

Cashier's checks: This is an incorrect option.

Cashier’s check does not charge interest but charges a small amount of fee.

Pre-paid cards: This is an incorrect option.

Pre-paid cards does not charge interest.

Payday loans: This is the correct option.

Payday loans charges high interest for a short-term loan.

Learn more:

1. Learn more about the money owed to the credit card company

brainly.com/question/8750254

2. Learn more about the common credit card fee

brainly.com/question/1124275

3. Learn more about making an on-time minimum payment of credit card

brainly.com/question/6453895

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Money and Banking

Keywords: payment, method, typically, charges, highest, interest, rates, credit cards, cashier's checks, pre-paid cards, payday loans.

You might be interested in

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are

lozanna [386]

Answer:

a. increase price in the short run but not in the long run.

Explanation:

The firms don't use resources that are available in limited quantities. So, as firm output increases, they can use resources in higher quantity but at the same price.

Therefore, as quantity demanded increases, the firms can supply higher quantity without any increase in resource cost. So, price increase in short run but not in the long term.

4 0

3 years ago

Dorothy Taylor has won a state lottery and will receive a payment of $93,000 every year, starting today, for the next 20 years.

Firlakuza [10]

Answer: The answer is $1,092,865.5426

To the nearest whole dollar, we have:

$1,092,866

Explanation: from the question above, we will be calculating the present value of a cashflow of $93,000 over a period of 20 years, at a rate of 5.76%.

We will be performing a discounting operation.

Refer to the attached files below to see the calculations and how we arrived at the answer above.