Read the following information and answer the following questions.

Net profit after tax = ₹6,50,000
12.5% debentures = ₹8,00,000
Income tax = 50%
Fixed assets at cost = ₹24,60,000
Depreciation reserve = ₹4,60,000
Current assets = ₹15,00,000
Current liabilities = ₹7,00,000
Capital employed = ₹28,00,000

What will be the amount of interest?

₹1,00,000

The correct answer is option 3- ₹1,00,000

Debentures = 8,00,000
Interest = 12.5%
Interest = 8,00,000 X 12.5/100
              = ₹1,00,000