Question

Calculate interest on drawings of Mr. Navdeep @ 10% p.a. for the year ended 31 March 2018 in each of the following cases ( Send your calculation through whatsapp personally) : (a) If he withdrew Rs. 20000 in the beginning of each quarter

Answer 1

Answer:

Total drawings= 7500 * 4

                       =30000

Rate= 10%

Case 1: If he withdrew 7500 at the beginning of each quarter-  

Note: When an equal amount of drawings is withdrawn at the beginning of each quarter, interest is calculated for a period of 7.5 months.

Hence,

Interest on drawings= 30000 * 10/100 * 7.5/12

                                 = 1875

Case 2: If he withdrew in 7500 at the end of each quarter-

Note: When an equal amount of drawings is withdrawn at the end of each quarter, interest is calculated for a period of 4.5 months.

Hence,

Interest on drawings= 30000 * 10/100 * 4.5/12

                                 = 1125

Case 3: If he withdrew in 7500 during the middle of each quarter-

Note: When an equal amount of drawings is withdrawn during the middle of each quarter, interest is calculated for a period of 6 months.  

Hence,

Interest on drawings= 30000 * 6/12 * 10/100

                                 = 1500

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