If the interest rate is 4 percent per year and you borrow $100 for one year, at the end of the year you must pay back

Question

Quizplus · Accepted Answer

If the interest rate is 4 percent per year and you borrow $100 for one year, at the end of the year you must pay back the principal amount of $100 plus the interest of 4%, which is $4. So the total amount to be paid back is $100 + $4 = $104. Therefore, the correct choice is C.

If the Interest Rate Is 4 Percent Per Year and You