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 DShow Answer
Solution(By Apex Team)
Let the principal be Rs. 100
Interest = Rs. 10
Actual principal = Rs. 90
∵ Interest on Rs. 90 = Rs. 10
∴ Interest on Rs.$100=\frac{10}{90} \times 100$
Interest on Rs.$ 100=\frac{100}{9}=11 \frac{1}{9} \%$
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