Answer:
Third option: 407%
Explanation:
Loan amount = $800
Interest charged = $125 for 2 weeks
Interest per week = $125/2 = $62.50
Weekly interest rate = 62.50/800 = 0.07812
Annual interest rate (52 weeks in a year) = 0.07812 x 52 = 4.06224
In percentage terms, multiply by 100:
4.06224 x 100 = 406.224%
≈ 407%