Personal Income Tax

Many tax preparation firms offer their clients refund anticipation loans (RALs). For a fee, the firm will give the client his refund when the return is filed. The loan is repaid when the Internal Revenue Service sends the refund directly to the firm. Thus, the RAL fee is equivalent to the interest charge on the loan. The schedule in the table on the right is from a major RAL lender. Use this schedule to find the annual rate of interest for a 54,989 RAL which is paid back in 30 days.RAL Amount:55

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