Question

45. Rajan withdraws 10,000 at the beginning of every half-year period for personal expenses. Interest on drawing will be ....if rate is 10% p.a.
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Answer 1

Answer:

1,500

Explanation:

Drawing at beginning of year =10,000

So interest will be charged for the whole year

Interest = 10%×10,000×12/12

= 10,000×1

= 10,000

Drowning at beginning of half-year= 10,000

So interest will be charged for 6 months out of the whole year

Interest = 10%×10,000×6/12

= 10%×10,000×1/2

= 500

So interest on total Drowning =1,500