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?

Question

asked Aug 26, 2020 33.7k views

2 Answers

Stack Tracer · Answer 1 · 2020-09-02T02:15:04+0000

Answer:

Leif makes $47880 in interest.

Explanation:

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

r =
(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.