Read the following passage and answer the question.
To meet the requirements of funds for starting a new factory, the company issued 50,000, 10% debentures of र10 each and 2,000, 8% debentures of र100 each to the vendor of the machinery purchased for र7,00,000.
What will be the interest on the 8% debentures?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹16,000.
2,000, 8% debenture @ र100 each
= 2,00,000
Interest = 2,00,000 X 8/100
= र16,000