Question

Ali is a partner in a firm and
withdraws Rs. 2000 every month. Calculate
interest on Ali's drawings @ 5%.p.a.
for the year 2015 assuming that he
withdraws (i) in the beginning of every
month, (ii) in the middle of every month
and (iii) all at the end of every month.​

Answer 1

Answer:

Total drawings = ₹2,000 × 12 months

= ₹24,000

(i) Interest on Drawings = ₹24,000×5/100×6.5/12

= ₹650

(in the beginning)

(ii)Interest on Drawings = ₹24,000×5/100×6/12

= ₹600

(in the middle)

(iii)Interest on Drawings = ₹24,000×5/100×5.5/12

= ₹550

(at the end)