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Question

Crescent Ltd. issued 100000, 10.5% debentures of Rs.100 each. The total amount of interest payable on the debentures will be __________.

A
Rs.10,50,000
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B
Rs.10.5
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C
Rs.10,00,000
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D
Rs.1,05,000
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Solution

The correct option is A Rs.10,50,000
Firstly, calculate the interest on the basis of given value per Debenture i.e Rs.100 X 10.5%=Rs.10.5
Therefore for 1,00,000 debentures= Rs.10.5 X 1,00,000=Rs.10,50,000/-

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