An automobile financier claims to be lending money at simple interest, – McqOptions

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1.	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 at the rate of 10%, the effective rate interest becomes
A.	10.25%
B.	10.5%
C.	10.75%
D.	11%
Answer» B. 10.5%

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