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: $11\frac{1}{9}$%
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 $11\frac{1}{9}$%.
Related Questions
Know More about
Staff Selection Commission Sub Inspector ...
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Get Updates Brochure
Your Staff Selection Commission Sub Inspector Exam brochure has been successfully mailed to your registered email id “”.
