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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 :

  1. A \(10 \%\)
  2. B \(11.1 \%\)
  3. C \(25 \%\)
  4. D \(23.45 \%\)
Verified Solution

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 \( = \left(1 + \frac{1}{9}\right)^2 - 1 \). \( = \left(\frac{10}{9}\right)^2 - 1 \). \( = \frac{100}{81} - 1 = \frac{19}{81} \).…