If Mega Corp.borrows $9 000 and agrees to pay the lender $10 000 in 1 year,the annual interest rate on the loan is approximately _____%.

Name: If Mega Corp.borrows $9 000 and agrees to pay the lender $10 000 in 1 year,the annual interest rate on the loan is approximately _____%.
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Question

Quizplus · Accepted Answer

The interest rate can be calculated using the formula:
Interest Rate = ($10,000 - $9,000)/$9,000 x 100
Interest Rate = $1,000/$9,000 x 100
Interest Rate = 11.1%
Therefore, the answer is C) 11.1.