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-
সমাধান
সঠিক উত্তর: Option B
Let the sum be BDT 100. Then,
S.I. for first 6 months = (100 x 10 x1)/(100 x 2)= BDT 5
S.I. for second 6 months = (105x10x1)/(100 x 2)= BDT 5.25
So, amount at the end of 1 year =