7
QuizMultiple Choice

Credit and Loans — Quiz

Question 7 • Economics

The simple interest on a loan of $200 at 10 percent interest per year is

Answer
A
$15 per year until the loan is paid off.
B
$25 per year until the loan is paid off.
C
$10 per year until the loan is paid off.
D
$20 per year until the loan is paid off.

Explanation

Simple interest per year is the loan amount multiplied by the annual interest rate: $200 × 0.10 = $20. So the interest is $20 per year until the loan is paid off, which is choice B.

AI-written and checked against the verified answer.

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