8. Friendlys 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). Whats the effective annual return (EAR) Friendlys earns on this lending business? If you were brave enough to ask, what APR would Friendlys say you were paying? Fun side note: these types of places and loan arrangements happen regularly in the U.S., and are legal (if not moral).