Schyler is able to take out a loan for $3,000 for one year at an annual interest rate of 10 percent.After calculating her rate of return to be $200,Schyler will realize she will:
A)lose $100 overall if she takes out the loan.
B)make $200 overall if she takes out the loan.
C)make $100 overall if she takes out the loan.
D)lose $200 overall if she takes out the loan.

Question

Quizplus · Accepted Answer

The interest on the loan is $300 (10% of $3,000). Schyler's rate of return is $200, so she will lose $100 overall ($200 - $300 = -$100).

Schyler Is Able to Take Out a Loan for $3,000