Home
Class 14
MATHS
An automobile financer claims to be lend...

An automobile financer claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest at the rate of 10%, the effective rate of interest becomes

A

0.1025

B

`10.5`%

C

0.1075

D

0.11

Text Solution

AI Generated Solution

Promotional Banner

Similar Questions

Explore conceptually related problems

An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes (a) 10% (b) 10.25% (c) 10.5% (d) None of these

A private finance company A claims to be lending money at simple interest. But the company includes the interest every 6 months for calculating principal. If company A is charging an interest of 10%, the effective rate of interest after 1 yr becomes

If ratio of principal and simple interest for 1 year is 25 : 1, then the rate of interest is

If the rate of interest is 20% per annum compounded in every 6 months, then what is the effective rate of interest per annum?

An amount at the rate of 5% pa becomes rupees 10 more at compound interest than that of simple interest after 2 yr. Calculate the principal.