Question

Leif took out a payday loan with an effective interest rate of 26,600%. If he has $180 to invest for a year at this interest rate, how much would he make in interest?

Answer 1

Answer: $47,880

Step-by-step explanation:

APEX

Answer 2

Answer:

Leif makes $47880 in interest.

Step-by-step explanation:

Given: Interest rate (r) = 26,100%

r = $\frac{26600}{100} = 266$

Principle (p) = $180

time (t) = 1

Now we have to find the simple interest. The simple interest formula is  I=prt

Plugging in the given values, we get

I = 180×266×1

I = $47880

So Leif makes $47880 in interest.