Question

A has withdrawn Rs 5,600 for three months and Rs 9,800 for two months and rate of interest on drawings is 10% p.a. Calculate interest on drawings is 10% p.a. calculate interest on drawings
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Answer 1

Answer:

Explanation:

CALCULATIONS OF INTEREST WILL BE AS UNDER

AS THE DATES ARE NOT GIVEN IN QUESTION, I WILL CALCULATE PRESUMING THE DATE MYSELF.

01.04.2010   5600.00

01.05.2010   5600.00

01.06.2010   5600.00

01.07.2010   9800.00

01.08.2010   9800.00

INTEREST CALCULATIONS FOR THE FULL YEAR i.e. UPTO 31.03.2011 WILL BE AS UNDER:-

DATE           AMOUNT        NO OF MONTHS  PRODUCT

01.04.2010   5600.00         12                           67200

01.05.2010   5600.00         11                            61600

01.06.2010   5600.00         10                           56000

01.07.2010   9800.00         09                          88200

01.08.2010   9800.00        08                           78400

                                                     TOTAL       351400

INTEREST WILL BE 351400*10%/12  =          2928.33