Multiple choice

A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A purchased goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. He paid 5% of sales as commission. The venture is terminated after 3 months. A is entitled to get 10% p.a. interest on capital invested. The amount of interest received by A will be __________.

  1. 5,000

  2. 2,500

  3. 3,750

  4. 25,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A invested 2,00,000. Interest is 10% p.a. for 3 months. Interest = 2,00,000 * 0.10 * (3/12) = 2,00,000 * 0.10 * 0.25 = 5,000.

AI explanation

Using the simple interest formula, Interest = (Principal * Rate * Time) / 100, we calculate the return on A's invested capital. The principal is Rs. 2,00,000, the annual interest rate is 10%, and the time is 3 months (or 3/12 years). Therefore, Interest = (200000 * 10 * 3) / (100 * 12), which equals Rs. 5,000.

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