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Friendlys Quick Loans, Inc., offers you $8.50 today but you must repay $10.75 when you get your paycheck in one week (or els
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Answer #1

b. Calculation of APR:-

=RATE(nper,pmt,pv,fv)

=RATE(1,,8.5,-10.75)*52

=1376.47%

a. Calculation of effective annual rate-

=EFFECT(1376.47%,52)

=20111934.44

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