Final answer:
To find the interest Candis would make from a 15,400% interest rate on a $220 investment for one year, we calculate using the simple interest formula, resulting in $33,880.
Step-by-step explanation:
The question asks us to determine how much interest Candis would make from a payday loan with an effective interest rate of 15,400% if she invested $220 for a year. To calculate the interest earned, we can use the formula for simple interest which is I = Prt, where I is interest, P is principal amount (the initial amount of money), r is the annual interest rate (in decimal form), and t is the time in years.
Converting 15,400% to a decimal, we get 154. Then, apply the formula:
I = $220 × 154 × 1
This gives us:
I = $33,880
Therefore, Candis would make $33,880 in interest after one year, which corresponds to option D.