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Rs 5 crore specific loan at 8% p.a. for a full year; Rs 1 crore sits on deposit at 5% for 6 months. Capitalise?

ARs 35 lakh
BRs 40 lakh
CRs 37.5 lakh
DRs 42.5 lakh
Answer & Solution
Correct answer: C. Rs 37.5 lakh
Interest is 5 crore x 8% = 40 lakh; deposit income is 1 crore x 5% x 6/12 = 2.5 lakh; so 37.5 lakh is capitalised.
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