Friendlys Quick Loans Inc., offers you five for seven or l knock on your door. This means you get $5.000 today and repay $7.00 when you get your paycheck in one week (or else). If you were brave enough to ask, what APR would Friendlys say you were paying? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) APR 2085.71 Whats the effective annual return Friendlys earns on this lending business? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16) EAR

Friendly’s Quick Loans, Inc., offers you “five for seven or I knock on your door.” This means you get $5.00 today and repay $7.00 when you get your paycheck in one week (or else). If you were brave enough to ask, what APR would Friendly’s say you were paying? What’s the effective annual return Friendly’s earns on this lending business?