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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?
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- 10%
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10 1 % 9 - 11%
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11 1 % 9
- 10%
Correct Option: D
Let the principal be Rs. 100
Interest = Rs. 10
Actual principal = Rs. 90
∵ Interest on Rs. 90 = Rs. 10
| ∴ Interest on Rs. 100 = | × 100 | |
| 90 |
| Interest on Rs. 100 = | = 11 | % | ||
| 9 | 9 |
