What is the effective annual return

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F.Q Loans Inc. offers "five for four, or I knock on your door." This means you get $4 today and repay $5 when you get your paycheck in 1 week (or else). Whats the effective annual return F.Q earns on this lending business? If you were brave enough to ask, what APR would FQ say you were paying?

Reference no: EM131319973

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