Question
Friendlys Quick Loans, Inc., offers you $8.00 today but you must repay $9.95 when you get your paycheck in one week (or else). What is
Friendly’s Quick Loans, Inc., offers you $8.00 today but you must repay $9.95 when you get your paycheck in one week (or else).
What is the effective annual return Friendly’s 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.)
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
