Question

2. An agent allows a rebate of 4% to an investo
while the bank pays an interest of 14% on the

investment. What is the actual rate of interest
earned by the investor on his investment?​

Answer 1

Answer:

4%.

Step-by-step explanation:

Let us assume that the invester invests Rs.(100-4)= 96

Interst on Rs.96,so 4%of 96=3.84 (96×4÷100).

Interest on Rs.96=3.84×100÷96=4 i.e. 4%.