To meet the requirements of funds for starting a new factory, the company issued 50,000, 10% debentures of र10 each and 2000, 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?

₹16000

The correct answer is option 1- ₹16000.

50,000, 10% debenture @ र10 = 5,00,000
         interest= 500000 X 10/100
                    = र50000

2,000, 8% debenture @ र100 each = 2,00,000
           Interest= 200000 X 8/100
                       = र16000