1. Calculating EAR. Friendly"s Quick Loans, Inc., offers you "five for four, or I knock on your door." This means you get $4 today and repay $5 when you get your paycheck in one week (or else). What"s...

1. Calculating EAR. Friendly"s Quick Loans, Inc., offers you "five for four, or I knock on your door." This means you get $4 today and repay $5 when you get your paycheck in one week (or else). What"s the effective annual return Friendly"s earns on this lending business? If you were brave enough to ask, what APR would Friendly"s say you were paying?

2. Calculating Annuity Present Values. Beginning three months from now. You want to be able to withdraw$2,200each quarter from your bank account to cover college expenses over the next four years. If the account pays .90 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years?