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16 August, 22:28

Virginia borrowed money from G and L Lending at 35% interest per year. The state maximum interest rate is 20% per year. Virginia defaulted on the loan. What amount can G

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  1. 16 August, 22:55
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    -G & L will be able to collect the principal plus 20% interest per year.

    -G & L will be able to collect the principal but not any interest.

    -G & L will not be able to collect either the principal or interest.

    They all depending on the particular state law.

    Explanation:

    Complete Question-

    Virginia borrowed money from G & L Lending at 35% interest per year. The state maximum interest rate is 20% per year. Virginia defaulted on the loan. What amount can G& L collect from Virginia?

    a.

    G & L will be able to collect the principal plus 20% interest per year.

    b.

    G & L will be able to collect the principal but not any interest.

    c.

    G & L will not be able to collect either the principal or interest.

    d

    All of the above may be correct. The answer depends on the particular state law

    Answer is D
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