Explanation: Corporate wallet recharges are a common practice in business environments where companies provide employees or departments with a digital wallet to manage expenses. These wallets can be recharged with a specific amount, and often, as an incentive, a cash back percentage is offered on the recharge amount.
In this scenario, the corporate wallet is recharged with Rs. 7,00,000. The cash back percentage offered for this recharge is 4.5%. This means that the corporate entity will receive a cash back amount calculated as 4.5% of Rs. 7,00,000.
To calculate the cash back amount, we use the formula:
\[ \text{Cash Back Amount} = \text{Recharge Amount} \times \left(\frac{\text{Cash Back Percentage}}{100}\right) \]
Substituting the given values:
\[ \text{Cash Back Amount} = 7,00,000 \times \left(\frac{4.5}{100}\right) \]
\[ \text{Cash Back Amount} = 7,00,000 \times 0.045 \]
\[ \text{Cash Back Amount} = 31,500 \]
Therefore, the corporate entity is eligible for a cash back of Rs. 31,500 on the recharge of Rs. 7,00,000.
It is important to note that the cash back percentage is a fixed rate determined by the service provider or the corporate policy. In this case, the rate is 4.5%, which is the correct answer among the given options. Other options like 2%, 3%, and 6% are incorrect as they do not match the specific terms of the cash back offer for this recharge amount.
Understanding the concept of cash back percentages and how they apply to corporate wallet recharges is crucial for managing corporate finances effectively. This knowledge helps in making informed decisions about financial incentives and optimizing the use of corporate funds.