Find the annual income obtained by investing Tk 3000 in 5% debentures of face value Tk 100 at Tk 125?

Question: Find the annual income obtained by investing Tk 3000 in 5% debentures of face value Tk 100 at Tk 125?

Solution:
The number of debentures purchased = Tk. 3000/125
One debenture will give an income investment of Tk 100 × 5% = Tk 5.
So, total income = 5 × (3000/125) = Tk 120.