Question

You have just obtained a personal loan for a new home movie system under the simple interest method. You have borrowed $12,000 for 9 months at an annual rate of 10%. Your marginal tax rate is 28%. What are the total interest charges you would pay if the loan is paid off on time?
A) $1,200
B) $1,080
C) $900
D) $648
E) None of the above

Answer 1

Answer:ITS EITHER A OR E.

NOT SURE.