Question

(1) Usha withdraws 2,000 in the beginning of every month. If 10% p.a. interest is chargeable on drawings, determine annual drawings and interest on drawings.​

Answer 1

Answer:

Annual Drawing : 24000

Interest on Drawings per annum : 2400

Step-by-step explanation:

principal = 2000 per month

principal per annum = 2000×12

= 24000

rate of interest per annum = 10%

Amount =

$=p(1 - \frac{r}{100} ) \\ = 24000(1 - \frac{10}{100} ) \\ = 24000( \frac{90}{100} ) \\ = 21600$

Interest per annum= Principal - Amount

=24000-21600

= 2400