Friendly's Quick Loans, Inc., offers you $4.50 today but you must repay $6.05 when you...
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Friendly's Quick Loans, Inc., offers you $4.50 today but you must repay $6.05 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., 32.16).) 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., 32.16).) Annual percentage rate %
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