Question

On 1st April 2021, 2fs Capital was ₹2,00,000. On 1st October 2021, he introduces additional capital of ₹1,00,000. Interest on capital @ 6% p.a. on 31st March, 2022 will be :

Answer 1

Given data:

• The capital on 1st April, 2021, was Rs 2,00,000.
• An additional capital of Rs 1,00,000 was introduced on the 1st of October, 2021.
• The interest on capital is to be charged at 6% p.a.

To find: The interest on capital as on 31st March, 2022.

Answer:

Interest on capital = (Capital × Rate × Time period) ÷ (100 × 12)

Interest on capital [April - September] = (Rs 2,00,000 × 6 × 6) ÷ (100 × 12) = Rs 6,000

On 1st October, an additional capital of Rs 1,00,000 was introduced. The capital will therefore be Rs 2,00,000 + Rs 1,00,000 = Rs 3,00,000.

Interest on capital [October - March] = (Rs 3,00,000 × 6 × 6) ÷ (100 × 12) = Rs 9,000

The total interest on capital = Rs 6,000 + Rs 9,000 = Rs 15,000.

Therefore, the interest on capital as on 31st March, 2022, is Rs 15,000.