Suppose a state has set a usurious rate of interest as any interest rate above ________ percent.Joseph borrows $10,000 from Derek.Derek can demand a maximum of $11,000 without violating the usury law.
A) 10
B) 100
C) 1
D) 1000

Question

Quizplus · Accepted Answer

The state has set a maximum interest rate and any interest rate above that would be considered usurious. Since Derek can demand a maximum of $11,000, the interest rate would be 10% of $10,000 (which is $1,000) added to the principal amount of $10,000, resulting in a total amount owed of $11,000. Therefore, any interest rate above 10% would be considered usurious and illegal in this state.

Suppose a State Has Set a Usurious Rate of Interest