Question

Aditya withdrew a fixed amount of Rs.12,000 at the end of each quarter,the interest on drawings to be charged at 15% p.a .Interest on Drawings of Aditya is *
1 point
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Answer 1

Explanation:

there will be four quarters in one year

so total withdrawals will be = 12000*4 = 48000*15/100

= 7800/-

Answer 2

ANSWER :

• ❖ If Aditya withdrew Rs. 12,000 at the end of each quarter; rate of interest on drawings is 15% p.a.; then the amount of Interest chargeable on Drawings of Aditya will be Rs. 2,700.

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SOLUTION :

❒ Given :-

• Aditya withdrew Rs. 12,000 at the end of each quarter.

• Rate of interest on drawings is 15% p.a.

❒ To Find :-

• Amount of Interest on Drawings of Aditya = ?

❒ Required Formula :-

• $\dag \: \: \underline{ \boxed{ \sf{ \: Interest \: \: on \: \: Drawings = Total \: \: Drawings \times Rate \: \: of \: \: Interest \times Time \: }}}$

❒ Note :-

• ✎ A year has 4 quarters. Hence, when a fixed amount is withdrawn as drawings every quarter, then the total drawings is calculated by multiplying the fixed amount with 4; i.e., 4 × Fixed Amount = Total Drawings.

• ✎ When equal amounts are withdrawn in the end of each quarter during the year the interest on drawing will be calculated on the total drawings at the specified rate for the average period of 4½ months or 4.5 months.

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❒ Calculation :-

Here,

• Amount withdrawn on each quarter = Rs. 12,000

➨ Total Amount withdrawn = Rs. (12,000 × 4) = Rs. 48,000

• Rate of Interest = 15% p.a.

• Time = 4.5 months

Using the formula of Interest on Drawings,

• ★ Interest on Drawings = Total Drawings × Rate of Interest × Time

⇒ Interest on Drawings = Rs. 48,000 × 15% × 4.5 months

⇒ Interest on Drawings = $\tt{Rs. \bigg(48,000 \times \dfrac{15}{100} \times \dfrac{4.5}{12} \bigg)}$

∴ Interest on Drawings = Rs. 2,700