Answer: The pawnbroker charged Elisa a simple interest rate of 120% per year
Step-by-step explanation:
I = PRT/100
I is the simple interest = amount - principal = $279.90 - $270 = $9.90
P (principal) is the loan given Elisa = $270
R is the annual simple interest rate
T (time) is the duration the loan is paid back with interest = 11 days = 11/360 year
9.9 = 270 × R × 11/360 × 1/100
R = (9.9×360×100)/(270×11) = 120%
Annual simple interest rate = 120%
