Interest on capital payable to Vivek will be:

Question

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be:

Answer 1

Interest on capital is computed using the formula: \[ \text{Interest on Capital} = \text{Capital Amount} \times \text{Rate of Interest}. \] Given Vivek's capital of ₹3,80,000 and an annual interest rate of 15%, the interest is calculated as follows: \[ \text{Interest on Capital} = ₹3,80,000 \times 15% = ₹57,000. \] Therefore, the correct option is (C).

Interest on capital payable to Vivek will be:

Show Hint

The Correct Option is C

Solution and Explanation

Top Questions on Miscellaneous

Questions Asked in CBSE Class XII exam