Martin Borrows Some Money and Does Not Make Any Payments

question 228

Multiple Choice

Martin borrows some money and does not make any payments on it. The interest he owes on the money accumulates over five years as added liability. In which situation would he owe the most?

• A) He borrowed $1,000 at an interest rate of 5%.
• B) He borrowed $800 at an interest rate of 8%.
• C) He borrowed $1,090 at an interest rate of 3%.
• D) He borrowed $760 at an interest rate of 11%.