Suppose a state has set a usurious rate of interest as any interest rate above 25 percent.Samuel borrows $1,000 from Clara.Clara can demand a maximum of ________ without violating the usury law.
A) $1,000
B) $25
C) $1,250
D) $750

Question

Quizplus · Accepted Answer

If the usurious rate of interest is any interest rate above 25 percent, then Clara can demand a maximum interest rate of 25 percent on the $1,000 loan. Therefore, the maximum amount Clara can demand without violating the law is $1,250 ($1,000 + 25% interest = $1,250). So, the correct choice is C.

Suppose a State Has Set a Usurious Rate of Interest