CUET · MATHS · PYQ PAPER 2025
If a moneylender charges interest at the rate of 10 rupees per 100 rupees per half year, payable in advance, then the effective rate of interest per annum is :
- A \(10 \%\)
- B \(11.1 \%\)
- C \(25 \%\)
- D \(23.45 \%\)
Answer & Solution
Correct Answer
(D) \(23.45 \%\)
Step-by-step Solution
Detailed explanation
Effective half-yearly rate \( = \frac{10}{100 - 10} = \frac{10}{90} = \frac{1}{9} \). Effective annual rate \( = \left(1 + \frac{1}{9}\right)^2 - 1 \). \( = \left(\frac{10}{9}\right)^2 - 1 \). \( = \frac{100}{81} - 1 = \frac{19}{81} \).…
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