A person claims to lend his money at the rate of 10% p.a. simple interest. However he takes interest in advance when he lends a sum for one year. At what interest rate does he lend the money actually?

\(11\frac{1 }{9}\)

Let 100 be the Principal, then 10 will be interest for one year

Now, since interest was already included in the sum, so the actaul sum will be 90

rate = \(\frac{10}{90}\) x 1000 = \(11\frac{1 }{9}\)%