What is the effective annual return friendly earns

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Reference no: EM132442062

Problem: Friendly's Quick Loans, Inc. offers you $7.25 today but you must repay $9.35 when you get your paycheck in one week.

Required:

Question 1: What is the effective annual return Friendly's earns on this lending business?

Question 2: If you were brave enough to ask, what APR would Friendly's say you were paying?

Reference no: EM132442062

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