What is the maximum annual interest rate allowed by Arizona usury laws?

The correct choice addresses the legal framework surrounding interest rates within Arizona. Under Arizona law, the maximum annual interest rate typically allowed for certain types of loans, particularly for consumer loans not governed by other specific laws, is 36%. This regulation is designed to protect consumers from excessively high-interest rates that could lead to financial hardship.

Many states have similar laws to prevent usury—charging excessively high-interest rates on loans—which is where the term "usury" originates. By limiting the maximum interest rate, the law seeks to create a fairer lending environment.

While some might reference rates such as 24%, 30%, or even 40% in discussions relating to different financial contexts or loan types, the standard maximum set under Arizona's usury laws is specifically 36%, making it the benchmark for consumer protection in lending practices.