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Eric borrows $1200 on January 1 for one year. Interest is calculated annually. He does not have to make any monthly payments, but he has

Eric borrows $1200 on January 1 for one year. Interest is calculated annually. He does not have to make any monthly payments, but he has to repay the entire loan plus interest on December 31 of the same year. If the loan has an annual interest rate of 8% what amount will Eric have to repay on December 31?

$96.

$1200.

$1308.

$1296.

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