If you borrow $100 at 12 percent annual interest and repay it in one lump sum at the end of one year, you will have to pay
A)$12.
B)$100.
C)$112.
D)$1,200.
E)$8.33.

Question

Quizplus · Accepted Answer

The interest on the borrowed amount is $100 x 0.12 = $12.

So, the total amount to be repaid at the end of the year is equal to the borrowed amount plus the interest, which is $100 + $12 = $112.

Therefore, the correct answer is C) $112.

If You Borrow $100 at 12 Percent Annual Interest and Repay