John is able to take out a loan for $1,000 for one year at an annual interest rate of 10 percent. After calculating his return to be $200, John will:
A. make money on net, and should take out the loan.
B. not make money on net, and should not take out the loan.
C. not make money on net, and should take out the loan.
D. make money on net, and should not take out the loan.
Answer: A
Economics
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