Question

A partner draws Rs. 500 at the end of each month. The amount of interest
on drawings @6% p.a. will be (a) Rs. 360 (b) Rs. 165 (c) Rs. 195 (d) Rs. 180.
​

Answer 1

Answer:

Calculation of interest on drawings:

Number of drawings = 6

Amount of each drawing= 4000

Total drawings= 6*4000

= 24000

Number of months= [Time left after 1st drawing + Time left after last drawing]/2

= [6+1]/2

= 3.5 months

Hence,

Interest on drawings= 24000 * 5/100 * 3.5/12

= 350

Answer 2

Answer:

(b). Rs. 165

The amount of interest on drawings will be

Rs. 165

Explanation:

Given :

• A partner draws Rs. 500

• At the end of each month

• Rate of interest = 6 % p.a.

To find :

• The amount of interest on drawings

Solution :

Total amount withdrawn = 500 × 12 =

Total amount withdrawn = Rs 6,000

Average Period = 5.5

Interest on drawings = Total amount of drawings × Rate of interest × Average period / 12

$\sf{Total \: amount \: of \: Drawings \: \times \: \dfrac{Rate \: of \: Interest}{100} \times \dfrac{Average \: Period}{12}}$

Interest on drawings =

$\sf{\longrightarrow 6000 \: \times \: \dfrac{6}{100} \times \: \dfrac{5.5}{12}}$

$\longrightarrow$ 165

Interest on drawings = Rs 165

Therefore,

(b). Rs. 165

The amount of interest on drawings will be Rs. 165