Friendlys Quick Loans, Inc., offers you $8.75 today but you must repay $11.15 when you...
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| Friendlys Quick Loans, Inc., offers you $8.75 today but you must repay $11.15 when you get your paycheck in one week (or else). |
| Requirement 1: |
| What is the effective annual return Friendlys earns on this lending business? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
| Effective annual return | % |
| Requirement 2: |
| If you were brave enough to ask, what APR would Friendlys say you were paying? (Round answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
| Annual percentage rate | % |
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