Question

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If the articles are silent regarding interest on Calls-in-advance, the minimum rate of interest to be charged is _____________ p.a.

Options

• 5%

• 6%

• 8%

• none of these

Answer 1

If the articles are silent regarding interest on calls-in-advance, the minimum rate of interest to be charged is 6% p.a.

Explanation: If the articles are silent, then the provisions of Table A are applicable. As per Table A, interest @ 6% p.a. is paid on calls-in-advance.