A rural landowner can deposit his savings in a commercial bank and receive an annual interest rate of 8%. Alternatively he can lend to villagers who need credit. If all loans are of the same size and only sixty per cent of them are repaid, the interest rate that would make his earnings the same as from depositing his savings in a bank is
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A rural landowner can deposit his savings in a commercial bank and receive an annual interest rate of 8%. Alternatively he can lend to villagers who need credit. If all loans are of the same size and only sixty per cent of them are repaid, the interest rate that would make his earnings the same as from depositing his savings in a bank is (A) 8% (B) 48% (C) 80% (D) 120%
Quantitative aptitude and data reasoning has come up 92 times in 6 exams since 2008.
This question is on Interest, growth rates and compounding, part of Quantitative aptitude and data reasoning in Mathematics.
Simple and compound interest and the growth-rate measures used for economies.
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Question from the DSE 2012 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.