If you invest $100 now and end up with $200 at the end of one year, what is the annual interest rate?
A) 50 percent
B) 100 percent
C) 200 percent
D) None of the above is correct.

Question

Quizplus · Accepted Answer

The annual interest rate is calculated as the amount of interest earned divided by the initial investment. Here, the interest earned is $100 ($200 - $100), and the initial investment is $100. Therefore, the interest rate is ($100 / $100) * 100% = 100%.

If You Invest $100 Now and End Up with $200