A company issued 1,00,000 12% debentures of ₹100 each. The amount of interest on debentures will be:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹12,00,000.
No of debentures = 1,00,000
Face value = ₹100
Total value = 1,00,000 x 100
= 1,00,00,000
Interest on debentures = 1,00,00,000 x 12/100
= 12,00,000