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Question : A moneylender claims to lend money at the rate of 10% per annum simple interest. However, he takes the interest in advance when he lends a sum for one year. At what interest rate does he lend the money?

Option 1: $10$%

Option 2: $10\frac{1}{9}$%

Option 3: $11$%

Option 4: $11\frac{1}{9}$%


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: $11\frac{1}{9}$%


Solution : Given: Rate = 10%
Let the amount lent be Rs. 100.
Interest =10% of 100 = Rs. 10
Actual amount = 100 – 10 = Rs. 90
Actual rate = $10×\frac{100}{90}=11\frac{1}{9}$%
Hence, the correct answer is $11\frac{1}{9}$%.

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