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?

₹16,000

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