The State of Transas Has Set a Maximum Interest Rate

question 3

Multiple Choice

The state of Transas has set a maximum interest rate of 12 percent on loans. Matt borrows $10,000 from Tony to pay off a gambling debt. Both are residents of Transas. They sign a contract, which states that Matt would have to pay $1,500 as interest in one year to pay off the loan. Later, Matt gets to know about the state usury limit and sues Tony. What is the nature of the contract between Matt and Tony?

• A) It is illegal as it violates gambling statutes.
• B) It is legal as both parties were competent when the contract was signed.
• C) The contract is void as it violates usury laws.
• D) The contract is void as it is a contract to commit a crime.

---

Definitions:

1-2 Pounds

A reference to a recommended healthy rate of weight loss per week to ensure sustainability and minimize health risks.

USDA's MyPlate

A visual guide created by the United States Department of Agriculture to help American consumers understand portion sizes and food groups recommended for a balanced and healthy diet.

Go Lean

A dietary approach focusing on lean proteins and reducing fat intake to improve overall health.

Recommended Calorie Intake

The advised amount of energy intake from food and drinks to support an individual’s lifestyle and health needs.