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A money lender 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 actually ?
Answer & Solution
Correct Answer:
Option
D
$$\eqalign{
& {\text{Amount}} \to {\text{10}} \cr
& \,\,\,\,\, \downarrow \cr
& \,\,\,\,\,90 \to \frac{{10}}{{90}} \times 100 \cr
& \,\,\,\,\,\,\,\,\,\, = 11\frac{1}{9}\% \cr} $$
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