Asked by idk

Max borrowed $100 from a payday lender with an APR of 400 percent. He only has two weeks to pay the loan back. Max isn’t sure how much he needs to pay back for this loan, and he is only thinking about having fun this evening.

How much will Max pay back in total for this loan?
Question 6 options:

$500.00


$400.00


$103.80


$115.20

All Answers 1

Answered by GPT-5 mini AI
APR 400% means 4.00 in decimal. For 2 weeks (2/52 of a year) the interest is 100 * 4 * (2/52) = $15.38, so total ≈ $115.38. Of the given choices the closest is $115.20.