P&B loaned Betty $400 so that she could buy her textbooks for the current semester. P&B's terms for repayment of the loan are, $200 in two months, $200 in four months, and another $100 at the end of the fifth month. The legal rate of interest on this type of loan is six percent per annum. P&B's loan is:
a. an exculpatory clause.
b. an unconscionable contract.
c. bailment.
d. usurious.
Answer: D
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