John can take out a one-year loan of $1,000 at an annual interest rate of 10 percent. After calculating his return to be $200, John knows he will _______ if he takes out the loan.
A) make $100
B) lose $100
C) make $200
D) lose $200

Question

Quizplus · Accepted Answer

John will make $100 because the interest on the loan is $100 (10% of $1,000), and his return is $200, leaving him with a net gain of $100.

John Can Take Out a One-Year Loan of $1,000 at an Annual