The rate of interest @ . . . . . . . . p.a is to be allowed to a partner for Advances/Loans given, assuming the partnership deed stays silent on the matter.

4%
5%
6%
8% E. 10%

The correct answer is 6%.

The rate of interest to be allowed to a partner for Advances/Loans given, assuming the partnership deed stays silent on the matter, is 6% p.a. This is the rate of interest that is generally considered to be fair and reasonable.

Option A: 4% is too low. This rate of interest would not be enough to compensate the partner for the use of their money.

Option B: 5% is a bit low, but it is still a reasonable rate of interest.

Option C: 6% is the rate of interest that is generally considered to be fair and reasonable.

Option D: 8% is too high. This rate of interest would be unfair to the other partners, as it would give the partner who made the loan an unfair advantage.

Option E: 10% is too high. This rate of interest would be considered usury in most jurisdictions.

In conclusion, the rate of interest to be allowed to a partner for Advances/Loans given, assuming the partnership deed stays silent on the matter, is 6% p.a.

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