Question: You can get a $1,000 check cashed one week early if you agree to accept $950 cash for the check, which you are required to

You can get a $1,000 check cashed one week early if you agree to accept $950 cash for the check, which you are required to sign over to the "bank." One week later, this bank cashes your paycheck and keeps the proceeds.

What annual rate of return did they earn on this transaction?

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