Question

A commission agent allows a rebate of 10% to an investor while the company pays an interest of 9% on the investment. What rate of interest does the investor actually earn on his investment ?

Answer 1

Instead of Rs. 100, the investor invests = Rs. (100-10) = Rs. 90

Interest on Rs. 90 = Rs. 9

Interest on Rs. 100 = $\frac{9\times 100}{90}=Rs.10=10$%