Friendlys Quick Loans, Inc., offers you $7.25 today but you must repay $9.25 when you get your

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Friendly’s Quick Loans, Inc., offers you $7.25 today but you must repay $9.25 when you get your paycheck in one week (or else)

1)What is the effective annual return Friendly’s earns on this lending business?

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

Related Book For answer-question

Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Posted Date: Mar 09, 2021 04:16 PM

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Friendlys Quick Loans, Inc., offers you $7.25 today but you must repay $9.25 when you get your

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We use the formula AP1r100n where Afuture value Ppresen... View the full answer

Financial Accounting an introduction to concepts, methods and uses

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