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Friendlys Quick Loans, Inc., offers you $5.50 today but you must repay $6.75 when you get your paycheck in one week (or else). a. What
Friendlys Quick Loans, Inc., offers you $5.50 today but you must repay $6.75 when you get your paycheck in one week (or else). | |
a. | What is the effective annual return Friendlys earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | If you were brave enough to ask, what APR would Friendlys say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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