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

-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