Question

Akhil is a partner in a firm. He draws 31,500 in the
beginning of every month. Calculate interest on
drawings @ 8% p.a. for the year 2020.
​

Answer 1

Answer:

Interest on drawings = ₹ 16,380

Explanation:

Given :

• Akhil draws 31,500
• In the beginning of every month
• Interest Rate = 8% p.a.

To find :

• Calculate interest on Drawings

Solution :

Total amount withdrawn = 31,500 × 12 = ₹ 3,78,000

★ If drawings are made in the beginning of every month:

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

Interest on drawings =

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

$\longrightarrow \: 3,78,000 \: \times \: \dfrac{8}{100} \: \times \: \dfrac{6.5}{12}$

$\longrightarrow$ 16,380

Interest on drawings = ₹ 16,380

∴ Interest on drawings = ₹ 16,380

Answer 2

Given :

• Amount - 31,500

• Rate - 8%

• Withdrew beginning of every month

To Find :

Interest On Drawings

Formula To Find :

${\overline{\boxed{\sf{Interest \: on \: Drawings = Amount \times \tfrac{Rate}{100} \times \tfrac{Average \: Period}{12} }}}}$

• When Amount is withdrawn at beginning of every month :

${\overline{\boxed{\sf{Average \: Period = \tfrac{Total \: Period \: in \: Months + 1}{2} = \tfrac{12 + 1}{2} = 6.5 }}}}$

Solution :

Total Amt. = 31,500 × 12 = 3,78,000

$\\ \to\sf Amount \times \tfrac{Rate}{100} \times \tfrac{Average \: Period}{12}$

$\to \: 3,78,000 \times \frac{8}{100} \times \frac{6.5}{12}$

$\to \: 30,240\times \frac{6.5}{12}$

$\to \: 16,380$

Interest On Drawings - 16,380

$\therefore \sf \: Interest \: on \: Drawings \: of \: Akhil \: is \: ₹ 16,380$