Question
1)Friendlys Quick Loans, Inc., offers you $3.70 for $4.70 or I knock on your door. This means you get $3.70 today and repay $4.70 when
1)Friendlys Quick Loans, Inc., offers you $3.70 for $4.70 or I knock on your door. This means you get $3.70 today and repay $4.70 when you get your paycheck in one week (or else). |
If you were brave enough to ask, what APR would Friendlys say you were paying? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
APR | % |
Whats the effective annual return Friendlys earns on this lending business? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
EAR | % |
2)Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): |
Stated Rate (APR) | Number of Times Compounded | Effective Rate (EAR) | |||||||
% | Semiannually | 10.5 | % | ||||||
Monthly | 11.4 | ||||||||
Weekly | 9.1 | ||||||||
Infinite | 12.8 | ||||||||
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