A money-lender charges interest at the rate of 10 rupees per 110 rupees semi-annually, payable in advance. Then
Match the LIST-I with LIST-II
LIST-I LIST-II A. rate per conversion period () I. 2 B. nominal rate (r)% II. 21 C. number of period in a year (m) III. 20 D. effective rate of interest ()% IV. 0.1
Choose the correct answer from the options given below:
A money-lender charges interest at the rate of 10 rupees per 110 rupees semi-annually, payable in advance. Then
Match the LIST-I with LIST-II
| LIST-I | LIST-II |
|---|---|
| A. rate per conversion period () | I. 2 |
| B. nominal rate (r)% | II. 21 |
| C. number of period in a year (m) | III. 20 |
| D. effective rate of interest ()% | IV. 0.1 |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 2
Interest paid in advance means 10 is charged on the 100 actually received, so (IV).
Semi-annual compounding gives (I).
Nominal rate (III).
Effective rate (II).
Related questions:
2025: 30 May Shift 1
2025: 3 June Shift 1