What is the effective annual return fridays earns on this


Friendly’s Quick Loans, Inc. offers you $4.25 today but you must repay $5.75 when you get your paycheck in one week (or else). What is the effective annual return Friday’s earns on this lending business?

Effective annual return ___

If you were brave enough to ask, what APR would Friendly’s say you were paying ?

Annual percentage rate ____

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Financial Management: What is the effective annual return fridays earns on this
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