Question

On 01.01.2012, X draws a bill on Y for Rs. 30,000. At maturity, the bill is dishonoured and Y requests X to draw a fresh bill for 2 months together with 12 % p.a interest. Noting charges amount to Rs. 100. The amount of interest will be:

• A. Rs. 600
• B. Rs. 602
• C. Rs. 598
• D. Rs. 550

Answer 1

The correct option is B

Rs. 602

Amount due from Y
= Rs. 30,000 + Rs. 100
= Rs. 30,100

Amount of interest
= Rs. 30,100 x 12% x 2/12
= Rs. 602