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 much interest on debentures will be paid by the company?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- र66,000.
* 50,000, 10% debenture @ र10
= 5,00,000
Interest = 5,00,000 X 10/100
= र50,000
* 2,000, 8% debenture @ र100 each
= 2,00,000
Interest = 2,00,000 X 8/100
= र16,000
TOTAL INTEREST = 50,000 + 16,000
= र66,000