7124

FriendlyAc€?cs Quick Loans, Inc., offers you $5.00 today but youmust repay $6.35 when you get your paycheck in one week (orelse).

    

Requirement1:

What is the effective annual return FriendlyAc€?cs earns on thislending business? (Round your answer asdirected, but do not use rounded numbers in intermediatecalculations. Enter your answer as a percentrounded to 2 decimal places (e.g.,32.16).)

  Effective annualreturn%Requirement2:

If you were brave enough to ask, what APR would FriendlyAc€?cs sayyou were paying? (Round answer asdirected, but do not use rounded numbers in intermediatecalculations. Enter your answer as a percentrounded to 2 decimal places (e.g.,32.16).)

  Annual percentagerate%