A loan account shows ₹50,000 outstanding on 1 April and ₹30,000 after a principal repayment on 1 October If interest is...
Type: MCQ • Marks: 1
A loan account shows ₹50,000 outstanding on 1 April and ₹30,000 after a principal repayment on 1 October If interest is calculated separately for each period, the calculation should:
Options
A. Apply the ₹50,000 balance to the entire year
B. Apply the appropriate balance to each relevant period
C. Ignore the repayment
D. Calculate interest only on ₹30,000 for the entire year
Explanation
When the outstanding principal changes, interest should be calculated according to the applicable balance and periods.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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