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problem1: One of your client is delinquent on his accounts payable balance. You have mutually agreed to a repayment schedule of $300 per month. You will charge .9% per month interest on the overdue balance. If current balance is $17,000, how long will it take for the account to be paid off?

problem2: Friendly's Quick Loans, offers you “three for four or knock on your door.” This means you get $3 today & repay $4 when you get paycheck in one week. Determine the effective annual return Friendly's earns on this lending business? If you were brave enough to ask, find out its APR.

Cost Accounting, Accounting

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