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  • Accounting and Finance for Bankers - 3 (JAIIB)
  • Raja’s acceptance to Dinesh for Rs. 8,000 renewed @ 18% p...
Multiple choice

Raja’s acceptance to Dinesh for Rs. 8,000 renewed @ 18% per annum for 3 months on the condition that Rs. 2,000 are paid in cash immediately. The amount of interest will be

  1. Rs. 360

  2. Rs. 450

  3. Rs. 90

  4. Rs. 270

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The interest will be charged on balance of Rs. 6,000 to be paid later. Interest = 6000 x 18/100 x 3/12 = Rs. 270

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