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:

Annual drawings = 500*12= 6000

Interest on drawing = annual drawing ×average period × rate of interest

= 6000*5.5/12*6/100= 165

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Total amount withdrawn = 500 × 12

Total amount withdrawn = Rs 6,000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 =

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

$\longrightarrow \: 165$

Therefore,

(b). Rs. 165

The amount of interest on drawings will be Rs. 165