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 ?
A. 10%
B. $$10\frac{1}{9}$$ %
C. 11%
D. $$11\frac{1}{9}$$ %
Answer: Option D
Solution (By Examveda Team)
$$\eqalign{ & {\text{Amount}} \to {\text{10}} \cr & \,\,\,\,\, \downarrow \cr & \,\,\,\,\,90 \to \frac{{10}}{{90}} \times 100 \cr & \,\,\,\,\,\,\,\,\,\, = 11\frac{1}{9}\% \cr} $$This Question Belongs to Arithmetic Ability >> Interest
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