Question

92. If equal amount is withdrawn by a partner in the end of each month during a
period of 6 months, interest on the total amount will be charged for
months
(A) 2.5
(B) 3
(C) 3.5
(D) 6​

Answer 1

If a fixed amount is withdrawn on last day of every month of the calendar year, the interest on the total amount of drawings will be calculated for 5.5 months. Average period will be calculated as:-

= Months left after first drawing + months left after last drawing

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2

= 11 + 0

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2

= 5.5 months.

Answer 2

Answer:

Interest on total amount will be charged for 2.5 months.

Explanation:

The interest on the total amount of drawings will be calculated for 2.5 months if the fixed amount is withdrawn on the last day of each month for a period of 6 months.

Average period will be calculated as =

(Months remaining since the initial drawing + months remaining since the last drawing)/2

                                                             = (5+0)/2

                                                             = 2.5months

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