Tess took out a payday loan with an effective interest rate of 34,700%. If she had $240 to invest for a year at this interest rate, how much would she make in interest?
Tess invests $240 and an effective interest rate is : 34,700%. If we want to calculate the interest we have to multiply $240 by 347. ( 34,700% = 347 * 100 % ): $240 * 347 = $83,280 Answer: B. $83,280
