Effective annual return friendlys earns on lending business

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Reference no: EM13879497

Friendly’s Quick Loans, Inc., offers you $6.50 today but you must repay $8.35 when you get your paycheck in one week (or else).

Requirement 1: What is the effective annual return Friendly’s 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 Friendly’s 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 %

Reference no: EM13879497

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