Friendly's Quick Loans, Inc., offers you five for four, or I knock on your door. This means
Question:
Friendly's Quick Loans, Inc., offers you "five for four, or I knock on your door." This means you get $4 today and repay $5 when you get your paycheck in one week (or else). What's 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
Here we are trying to find the interest rate when we know the PV and FV Using ...View the full answer
Answered By
Nandana Wijayarathna
I am a highly experienced writer in several areas,
Business management
Information technology
Business administration
Literature
Biology
Environmental science
History
4.50+
161+ Reviews
399+ Question Solved
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Friendlys Quick Loans, Inc., offers you three for four or I knock on your door. This means you get $3 today and repay $4 when you get your paycheck in one week (or else). Whats the effective annual...
-
What is the effective annual rate of interest if $100 grows to $150 in six years compounded quarterly?
-
What is the effective annual rate of interest if $450 grows to $750 in 3 years and 5 months compounded monthly?
-
A rectangular field will have one side made of a brick wall and the other three sides made of wooden fence. Brick wall costs 20 dollars per meter and wooden fence costs 30 dollars for 3 meters. The...
-
On December 8, 2016, after a threatened lawsuit by Jackson Plumbing, Waters paid the $3,700 account charged off on April 30, 2016 (Exercise 15.4). Give the entries in general journal form to...
-
During the first year of operation, Year 1, McGinnis Appliance recognized $292,000 of service revenue on account. At the end of Year 1, the accounts receivable balance was $57,400. Even though this...
-
What are the financial and non-financial determinants of value creation?
-
In the production of a bean oil beans containing 13.0 wt% oil and 87.0% solids are ground and fed to a stirred tank (the extractor) along with a recycled stream of liquid n-hexane. The feed ratio is...
-
Calculate Clean Price Given inputs. i . Instrument name: Security A ii . Issuer description: Issuer designs and manufactures wristwatches and timepieces for men and women. It sells its watches...
-
Dennis sold stock in Acme Widgets, a NYSE listed company, to Kurt for $30,000. His basis in the stock was $50,000, so he incurred a $20,000 capital loss. Kurt is Dennis' brother-in-law (i.e., Kurt is...
-
One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $500 per month. You will charge 1.1 percent per month interest on the overdue...
-
Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $2,500 monthly. The contract currently sells for $160,000. What is the monthly return on this investment vehicle? What is...
-
How do the cell walls of bacteria differ from those of plants?
-
Explain the process and tasks to apply, interview, and follow up for a job most effectively Identify common employment messages and explain when you would use each one First, share at least four...
-
Evidence that participating in the discussion board deepened your understanding of the course material. How do you think your posted messages brought in new material, ideas, or personal experiences...
-
Robert tells Joan, his wife, that he has been offered an upper management position by his employer. He informs her that if he accepts the offer, he will be required to relocate to Japan and work...
-
In "The Lottery," Jackson spends a great deal of time discussing the current ceremony and objects versus the prior and/or intended traditions. Why do you think this is important? Utilize two (2)...
-
1. Highlight three (3) key personal learnings from the information you reviewed. 2. How will you use this information/tips/strategy to help you increase your employability, either in your job search...
-
How can cloud computing decisions be addressed at a strategic level?
-
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
-
Describe contemporary leadership concepts.
-
Rackin Pinion Corporation's assets are currently worth $1,025. In one year, they will be worth either $1,000 or $1,290. The risk-free interest rate is 4.5 percent. Suppose the company has an...
-
Allied Products, Inc., is considering a new product launch. The firm expects to have annual operating cash flow of $6.9 million for the next eight years. Allied Products uses a discount rate of 11...
-
The price of Build A Fire Corp. stock will be either $62 or $86 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 4 percent. a. Suppose the...
-
What challenges arise when the HRM is uninformed concerning their legal rights and responsibilities? What is the potential impact on the organization? What should employees' expectations be...
-
Elaborate on "The Value of Learning of Applied Research Methods in Sports Management or Kinesiology" as another section of your Applied Research Methods in Sports Management. source:...
-
1. A entered into a contract with B, who is a minor. Can A later asks for the invalidation of the contract by reason of the minority of B? 10 points 2. A, the seller, and B, the buyer, agreed for the...
Study smarter with the SolutionInn App