Q.If the ratio of the principal and the total amount is 10:11, what is the annual interest rate? (a) 10% (b) 11% (c) \(10\cfrac{1}{11}\)% (d) 12%
Answer: A
Let’s assume the principal amount \((p)=10x \) rupees
Interest amount \((I)= (11x-10x)\) rupees

\(=x \) rupees

Time \((t)= 1\) year

\(\therefore\) Rate of interest \((r) =\cfrac{100\times I}{pt} \%\)

\(=\cfrac{100\times x}{10x\times 1}\%\)

\(=10\%\)

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