Effective annual return friendly earns on lending business

Assignment Help Financial Management

Reference no: EM131985732

Friendly’s Quick Loans, Inc., offers you $8.25 today but you must repay $10.45 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.)

Effective annual return %

If you were brave enough to ask, what APR would Friendly’s 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.)

Annual percentage rate

Reference no: EM131985732

Questions Cloud

How long will it take for the account to be paid off : If the current balance is $14,900, how long will it take for the account to be paid off?

Discuss concepts of how you can recover from an attack : Each discussion needs to be 1 to 2 pages in length. Use multiple concepts to support your points. Discuss concepts of how you can recover from an attack

Client directs tv advertising for a large corporation : The client directs TV advertising for a large corporation. His budget for a single ad campaign is typically around $10 million.

How would you apply your new knowledge : Base on the course content, discuss new skills you acquired from this class? How relevant are the new skills to your current and/or future profession?

Effective annual return friendly earns on lending business : What is the effective annual return Friendly’s earns on this lending business? If you were brave enough to ask, what APR would Friendly’s say you were paying?

How can organizations identify credit risk : In your opinion, which stakeholder is most adversely impacted by the above conditions? Employees, shareholders, debt holders, or society as a whole?

How crisis management plan and drp are similar or different : Discuss the how Crisis Management Plan (CMP) and DRP are similar or different. Research and find at least three approaches for developing a CMP.

Shops and the remainder : A distributor purchased 550 kilograms of potatoes for $165. He distributed these at a rate of $6.4 per 20 kilograms to 15 shops

What is the benefit-cost ratio for the project : What would the NPV of the above project be if the inflation rate was expected to be 4% in each of the next four years?

User Account

All Pages