A man buys a land and gives for it 20 times the annual rent Find the rate of interest he gets for his money. A. 10% B. 24% C. 45% D. 18% E. 5%

A man buys a land and gives for it 20 times the annual rent Find the rate of interest he gets for his money.

1. 10%
2. 24%
3. 45%
4. 18%
5. 5%

Answer & Explanation

Answer: Option B
Let annual rent is 1 Rs. so buys the land at 20 Rs. So by investing Rs.20 he is getting Rs.1 as interest. so on Rs.100 he gets Rs.5 . so rate%=5%.Hence option E is the answer.