If Mega Corp.borrows $9,000 in 2010 and agrees to pay the lender $10,000 in 2011, the interest rate on the loan is approximately:

Question

Quizplus · Accepted Answer

To calculate the interest rate, we need to use the formula: 
Interest rate = (Total amount of interest paid / Amount borrowed) x 100%

Total amount of interest paid = $10,000 - $9,000 = $1,000
Amount borrowed = $9,000

Plugging these values into the formula, we get:
Interest rate = ($1,000 / $9,000) x 100%
Interest rate ≈ 11.1%

Therefore, the answer is C) 11.1 percent.