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A man offers seven-for-eight loans to his friends. That is, he lends seven dollars today and gets eight dollars back in one week. What is

A man offers seven-for-eight loans to his friends. That is, he lends seven dollars today and gets eight dollars back in one week. What is the annual rate his friends are effectively paying him for the loans?

First, compute return over 1 week.

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To compute the return over one week for the loan we can calculate the simple interest earned by the ... blur-text-image

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