A. 10%
B. 10.25%
C. 10.5%
D. None of these
Let the sum be Rs. 100. Then,
S.I. for first 6 months = Rs. | 100 x 10 x 1 | = Rs. 5 | ||
100 x 2 |
S.I. for last 6 months = Rs. | 105 x 10 x 1 | = Rs. 5.25 | ||
100 x 2 |
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25
i.e Effective rate = (110.25 - 100) = 10.25%