Aisha can take out a one-year loan of $3,000 at an annual interest rate of 10 percent. After calculating her return to be $200, Aisha knows she will _______ if she takes out the loan.
A) lose $100
B) make $200
C) make $100
D) lose $200

Question

Quizplus · Accepted Answer

The interest on the loan for one year at 10 percent would be $300 (10% of $3,000). Since Aisha's return is $200, she will end up losing $100 because the cost of the loan exceeds her return by $100.

Aisha Can Take Out a One-Year Loan of $3,000 at an Annual