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What will be the interest for one year on ₹1,32,000 in a partner’s loan account at an annual rate of 5.5%?

Answer and explanation

Correct answer: ₹7,260

One-year interest = Principal × Rate = ₹1,32,000 × 5.5/100 = ₹7,260. This can also be verified as ₹6,600 for 5% plus ₹660 for 0.5%. Option A is incorrect because it does not include the additional 0.5% interest. Exam tip: Convert the percentage into a fraction before calculating.

Related tags

Partner Loan AccountInterest CalculationRetirement Of PartnerReconstitution Of PartnershipAccountancy Class 12Partner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A Partner

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