Question

A and B are partners. B draws a fixed amount at the end of every month. Interest on drawing is charged 15% p.a. At the end of the year interest on B's drawings amount to Rs 8250. Drawings of B were

Answer 1

Answer:

Drawings of B were Rs. 10,000

Explanation:

Let per month drawings of B = x

Total months in a year = 12

Total drawings made by B during the year = 12 × (x) =12x

Interest on drawing = 8,250

Average period for interest on drawings=

(months remaining after first drawing x months remaining after last drawing)÷2 =

(11+0) ÷ 2 = 5.5 months

Interest on drawings = (annual drawing × Rate of interest × $\frac{Average Period}{12}$

8,250 = 12x × 15% × $\frac{5.5}{12}$

x = 10,000