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Raghav was due ₹250000. As per agreement ₹100000 is paid immediately and the balance is payable in two equal annual instalments, with interest at six percent per annum on outstanding balance. What is the interest before the first year-end instalment?

Answer and explanation

Correct answer: ₹9000

After immediate payment, outstanding loan is ₹150000 and six percent of it is ₹9000. Exam tip: add interest before instalment.

Related tags

InstalmentInterestNumericalPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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