If you borrow $200 at 8 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay
A)$16.
B)$200.
C)$216.
D)$208
E)$8.

Question

Quizplus · Accepted Answer

To calculate the interest, multiply the amount borrowed by the interest rate expressed as a decimal: 
$200 x 0.08 = $16. 
So, the total amount to be repaid is:
$200 (the original loan) + $16 (the interest) = $216. 
Therefore, the correct answer is C.

If You Borrow $200 at 8 Percent Annual Interest and Repay