Calculating EAR Friendlys Quick Loans, Inc., offers you three for four or I knock on your door.

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Calculating EAR Friendly’s Quick Loans, Inc., offers you “three for four or I knock on your door.” This means you get $3 today and repay $4 when you get your paycheck in one week (or else). What’ the effective annual return Friendly’s earns on this lending business? If you were brave enough to ask, what APR would friendly’s say you were paying?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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