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Michael Coreleone 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

Michael Coreleone 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. (You are looking for an EAR here)

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