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.
How many debentures should be issued, if 8% debentures of र100 each are issued at 20% discount amounting to र2,00,000?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 2,500.
Nominal value = र100
Discount = 20%
Discount amount = 100 x 20/100
= र20
Number of debentures issued = 2,00,000/80
= 2,500