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CUET · MATHS · PYQ PAPER 2025

A person has taken a loan of Rs. 40, 000 for 3 months from a lender who has deducted Rs. 2, 000 as interest at the time of lending.
Then the effective rate of interest charged per annum by the lender is :
[Given \((1.0526)^4=1.2275\) ]

  1. A \(10.50 \%\)
  2. B \(21 \%\)
  3. C \(22.75 \%\)
  4. D \(16.75 \%\)
Verified Solution

Answer & Solution

Correct Answer

(C) \(22.75 \%\)

Step-by-step Solution

Detailed explanation

Actual amount received \( = 40000 - 2000 = 38000 \) Interest rate per period (3 months) \( i = \frac{2000}{38000} = \frac{1}{19} \approx 0.0526 \) Number of periods per year \( n = \frac{12}{3} = 4 \) Effective annual rate \( = (1 + i)^n - 1 \) \( = (1 + 0.0526)^4 - 1 \)…
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