The effective annual return earns on this lending business

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Reference no: EM131316238

Friendly’s Quick Loans, Inc., offers you $8.00 today but you must repay $9.95 when you get your paycheck in one week (or else).

What is 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?

Reference no: EM131316238

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