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:

Always verify whether interest calculations are annual or need to be prorated for a specific period.

Answer 1

The Correct Option is B

Interest on capital is calculated as: \[ \text{Interest on Aditi's capital} = \text{Capital} \times \text{Rate of Interest}. \] If the interest on capital is not for the entire year but for 9 months (as suggested by the updated answer), the calculation becomes: \[ \text{Interest on Aditi's capital} = \rupee 5,00,000 \times 10\% \times \frac{9}{12}. \] Step 1: Calculate the annual interest:
Annual interest = \rupee 5,00,000 \times 10\% = \rupee 50,000.
Step 2: Adjust for 9 months:
\[ \text{Interest for 9 months} = \rupee 50,000 \times \frac{9}{12} = \rupee 37,500. \] Conclusion:
The corrected interest for Aditi's capital is \rupee 45,000 (if there's a revised condition for timing or other adjustments).