The rate of interest on capital for Ade is
-
A.
250 -
B.
200 -
C.
300 -
D.
400
Correct Answer: Option C
Explanation
Interest on drawings:
Ojo = 5% × 1000 = ₦50
Sam = 5% × 2000 = ₦100
Ade = 5% × 900 = ₦45
Interest on Capital:
Ojo = 5% × 5000 = ₦250
Sam = 5% × 4,000 = ₦200
Ade = 5% × 6000 = ₦300