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Kavita's loan was ₹160000. ₹40000 was paid at the beginning of the year and the remaining balance was paid at year end. At six percent per annum, what is the interest for the year?

Answer and explanation

Correct answer: ₹7200

After payment at the beginning, ₹120000 remained outstanding for one year. Exam tip: do not charge interest on amount paid at the start.

Related tags

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

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