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    Question

    A bank has granted a loan of ₹10,00,000 to a company

    with a 5-year tenure and an annual interest rate of 12%. What is the annual interest income from this loan?
    A ₹50,000 Correct Answer Incorrect Answer
    B ₹1,20,000 Correct Answer Incorrect Answer
    C ₹12,000 Correct Answer Incorrect Answer
    D ₹6,00,000 Correct Answer Incorrect Answer
    E ₹60,000 Correct Answer Incorrect Answer

    Solution

    The annual interest income is calculated as: Interest Income=Loan Amount×Interest Rate =10,00,000×12%=₹1,20,000

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