Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 70

Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has a new job starting next week and expects a salary to start again in a couple of weeks. Since she is a little short on money to pay her rent, she decided to borrow $100 from a loan company, which will charge her only $10 interest if the $110 is paid no more than 1 week after the loan is made. What are the
a) nominal annual and b) effective annual interest rates that she will pay on this loan