Plz explain question 70
Dear Student,
The answer is Option (d.), i.e., Rs.120
Working Notes:
As per Table F, an interest of 12%p.a. is allowed on calls-in-advance.
Amount due on call = 600 × 5 = Rs.3,000
Interest on calls in advance is due for 4 months.
Interest on calls in advance = 3,000 x (12/100) x (4/12)
Interest on calls in advance = Rs.120
Regards
The answer is Option (d.), i.e., Rs.120
Working Notes:
As per Table F, an interest of 12%p.a. is allowed on calls-in-advance.
Amount due on call = 600 × 5 = Rs.3,000
Interest on calls in advance is due for 4 months.
Interest on calls in advance = 3,000 x (12/100) x (4/12)
Interest on calls in advance = Rs.120
Regards