A loan shark is a person who – or anentity that – loans money at extremely high interest rates and often usesthreats of violence to collect debts. The interest rates are generally wellabove an established legal rate, and often loan sharks are members oforganized crime groups.

 

Loan sharks do not require backgroundchecks or credit reports. They will lend large sums of money with the intentionof gaining high levels of interest in a short time. Loans from loan sharkscharge interest rates far above any regulated rate. For example, a loan sharkmight lend $10,000 to a person with t1% compounded interest rate per week.

 

These lenders may also often call on thedebt to be repaid at any time, using violence as a means of forcing repayment.

 

The bad network loans in colleges anduniversities lead to the distortion of the consumption concept and even theoutlook on life of college students, endangering the personal and propertysafety of college students, endangering the physical and mental health ofcollege students, and affecting the order of harmonious campus. Theparticularity of college students, the invasion of consumerism, the lack ofregulatory mechanisms, and insufficient ideological and political education arethe reasons for the frequent occurrence of campus loans. Therefore, in the newera, the prevention of bad online loans in colleges and universities shouldstart from strengthening the ideological and political education work, andbuilding a network loan firewall for colleges and universities to protectcollege students from bad online loans.

 

Exercises: please calculate the one year future value of $10,000 when interest is1% compounded each week?