10
QuizMultiple Choice

Banking and Financial Institutions

Question 10 • TX-Personal Financial Literacy and Economics

Tran got a loan of $10,000 from the bank to help pay for his new car. He agreed to pay $800 in interest for the use of this money.

Answer
A
800 ÷ 10,000 = .08
B
10,000 ÷ 800 = 12.5
C
10,000 – 800 = 9,200
D
10,000 + 800 = 10,800

Explanation

To find the interest rate, divide the interest paid by the amount borrowed: $800 ÷ $10,000 = 0.08. Converting 0.08 to a percent gives 8%, so choice A, “800 ÷ 10,000 = .08,” is correct.

AI-written and checked against the verified answer.

Previous
Next