Friendly's Quick Loans, Inc., offers you $$6\mathrm{.}75$ today but you must repay $$8\mathrm{.}75$ when you

get your paycheck in one week $($or else$).($hints: do part $2$ first; it's like the Ace Cash

Express payday loan problem in the video.$)$

Requirement $1$:

What is the effective annual return Friendly's earns on this lending business? $($Round

your answer as directed, but do not use rounded numbers in intermediate

calculations. Enter your answer as a percent rounded to $2$ decimal places $($e$.$g$.,$

$32\mathrm{.}16).)$

Effective annual return

Requirement $2$:

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

$($Round answer as directed, but do not use rounded numbers in intermediate

calculations. Enter your answer as a percent rounded to $2$ decimal places $($e$.$g$.,$

$32\mathrm{.}16).)$