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Friendlys Quick Loans, Inc., offers you $4.50 today but you must repay $6.05 when you get your paycheck in one week (or else). Requirement 1:

Friendlys Quick Loans, Inc., offers you $4.50 today but you must repay $6.05 when you get your paycheck in one week (or else).

Requirement 1:

What is the effective annual return Friendlys earns on this lending business?

Requirement 2:

If you were brave enough to ask, what APR would Friendlys say you were paying?

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