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.