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M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?
- a)2250
- b)1800
- c)2000
- d)1100
Correct answer is option 'A'. Can you explain this answer?
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M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accept...
To calculate the interest to be paid in cash by N, we need to follow the given information and apply the formula for simple interest.
Given information:
- Goods worth Rs 50,000 were sold to N.
- N accepted a three-month bill on 1.10.05.
- On the due date, N requested the bill to be renewed for another three months.
- N agrees to pay interest at the rate of 18% p.a. in cash.
Formula for calculating simple interest:
Simple Interest = (Principal × Rate × Time) / 100
Let's calculate the interest step by step:
1. Calculate the principal amount:
The principal amount is the value of the goods sold, which is Rs 50,000.
2. Calculate the time period:
The initial bill was for three months, and the renewal is for another three months. So the total time period is six months.
3. Calculate the rate of interest per month:
Since the interest rate is given as 18% p.a., we need to convert it into a monthly rate.
Monthly interest rate = Annual interest rate / 12
= 18 / 12
= 1.5%
4. Calculate the interest amount:
Using the formula for simple interest:
Interest = (Principal × Rate × Time) / 100
= (50,000 × 1.5 × 6) / 100
= 4,500
Therefore, the interest to be paid in cash by N is Rs 4,500.
Since none of the options provided matches the calculated amount, it seems there might be an error in the given options. However, based on the calculation, the correct answer should be Rs 4,500 (not provided in the options).
Given information:
- Goods worth Rs 50,000 were sold to N.
- N accepted a three-month bill on 1.10.05.
- On the due date, N requested the bill to be renewed for another three months.
- N agrees to pay interest at the rate of 18% p.a. in cash.
Formula for calculating simple interest:
Simple Interest = (Principal × Rate × Time) / 100
Let's calculate the interest step by step:
1. Calculate the principal amount:
The principal amount is the value of the goods sold, which is Rs 50,000.
2. Calculate the time period:
The initial bill was for three months, and the renewal is for another three months. So the total time period is six months.
3. Calculate the rate of interest per month:
Since the interest rate is given as 18% p.a., we need to convert it into a monthly rate.
Monthly interest rate = Annual interest rate / 12
= 18 / 12
= 1.5%
4. Calculate the interest amount:
Using the formula for simple interest:
Interest = (Principal × Rate × Time) / 100
= (50,000 × 1.5 × 6) / 100
= 4,500
Therefore, the interest to be paid in cash by N is Rs 4,500.
Since none of the options provided matches the calculated amount, it seems there might be an error in the given options. However, based on the calculation, the correct answer should be Rs 4,500 (not provided in the options).
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M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer?
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M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer?.
M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer?.
Solutions for M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice M sold goods worth of Rs 50,000 to N. On 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N?a)2250b)1800c)2000d)1100Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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