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 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). Since Schyler's return is $200, she will lose $100 overall ($200 - $300 = -$100).

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