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What will be the interest for one year on ₹156000 in the Partner’s Loan Account at an annual rate of 6.25%?

Answer and explanation

Correct answer: ₹9750

Interest = Principal × Rate = ₹156000 × 6.25/100. Since 6.25% equals 1/16, the interest is ₹156000 ÷ 16 = ₹9750. Therefore, option B is correct. In exams, converting 6.25% into 1/16 makes the calculation faster and reduces errors.

Related tags

Partner Loan AccountRetirement Of PartnerInterest CalculationPartnership AccountingPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancy

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