Problem 6.22 – Calculation of Effective Annual Return EAR and APR for Friendly’s Quick Loans, Inc.
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What is the effective annual return earned by Friendly’s Quick Loans, Inc. on their lending business that offers a loan? Additionally, what would be the APR claimed by Friendly’s? Calculate the effective annual return and the annual percentage rate.
Calculator Preview
Your numbers will vary.