A Ltd. issued 1,000, 10% debentures of ₹ 100 each at a premium of 5%. What will be the total amount of interest for one year?

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KollegeApply · Accepted Answer

₹ 10,000 Explanation: Calculate the total face value of the debentures: Total face value = Number of debentures $\times$ Face value per debenture Total face value = 1,000 $\times$ 100 = 1,00,000 Calculate the annual interest: Total interest = Total face value $\times$ Interest rate Total interest = 1,00,000 $\times$ 10% = 1,00,000 xx $\frac{10}{100}$ = 10,000

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