Question

Interest on Aditi’s capital will be:

• A. \rupee 50,000
• B. \rupee 45,000
• C. \rupee 40,500
• D. \rupee 54,000

Hint:

When calculating interest on capital, ensure the time period (e.g., full year or specific months) is considered to avoid over- or underestimation.

Answer 1

The Correct Option is B

Aditi’s capital is ₹5,00,000, and the interest rate is $10\% \text{ p.a.}$. However, if the interest is calculated for 9 months instead of the full year, the calculation becomes: $$\text{Interest on Capital} = ₹5,00,000 \times 10\% \times \frac{9}{12}.$$ 
Step 1: Calculate annual interest:
Annual interest = $₹5,00,000 \times 10\% = ₹50,000.$ 
Step 2: Adjust for 9 months:
Interest for 9 months: $$₹50,000 \times \frac{9}{12} = ₹45,000.$$ 
Conclusion:
The interest on Aditi’s capital for 9 months is $₹45,000$.