Question

A is drawing rs. 1000 per month on the last day if every month. if the rate of interest is 5%k.p.a then the total interest chargeable from him to accounting year ending on 31-12-1985 will be

Answer 1

there is a formula for calculating interest on drawings at the end of every month.

amount*12*rate*11/24

1000*12*(5/100)*(11/24)

= Rs. 275