Question

Mohan is an agricultural labourer. There are several months in a year when he has no work and

needs credit to meet his daily expenses. He depends upon his employer, the landowner for

creditwho charges an interest rate of 5 per cent per month. Mohan repays the money by

workingphysically for the landowner on his farmland.

Over the years his debt will –

a) Increase - because of increasing interest and non-payment of monthly amount

b) Remain constant - as he is working for the employer but is repaying less

c) Reduce - as amount equivalent to his salary is being counted as monthly repayment

d) Be totally repaid - as he is repaying the debt in the form of physical labour​

Answer 1

Answer:

Increase

is the correct answer ....