Effective annual return friendly earns on lending business

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Friendly’s Quick Loans, Inc., offers you $5.25 today but you must repay $6.45 when you get your paycheck in one week (or else).

What is the effective annual return Friendly’s earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual return? %

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

Annual percentage rate? %

Reference no: EM131844311

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