SOLUTION: A money lender lends money collecting 5 paise for every rupee per month.find the rate of interest.

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Question 1124093: A money lender lends money collecting 5 paise for every rupee per month.find the rate of interest.



Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
1 paise is equal to 1/100 rupees.

therefore 5 paise is equal to 5/100 rupees.

the interest charge per month is therefore 5/100 rupees for every rupee that is borrowed.

the interest rate per month is therefore (5/100) / 1 which is equal to 5/100 which is equal to .05 per month.

multiply that by 100 to get an interest rate of 5% per month.