Question

Calculate interest on drawings of mr vinod at the rate of 8% per annum for the year ended 31st march 2014 in each of the following cases
case 1 if the withdrawal of 2000 the beginning of each month
case 2 if the withdrawal office 2000 in middle of each month
case 3 if the with rupees 2000 at the end of each month

Answer 1

$\huge\mathbb\pink{AnSwEr:-}$

• To calculate interest on drawings :-

$\sf\red{drawings \: \times \frac{rate}{100} \times \frac{avg. \: period}{total \: months \: } }$

⟹In case 1:-

• drawings= 2000(in beggiNing of every month)
• rate= 8%

interest on drawings=

$\sf{⟹avg. \: period \: = \frac{total \: months + 1}{2} = \frac{12 + 1}{2} = 6.5}$

$\sf\blue{⟹2000 \times \frac{8}{100} \times \frac{6.5}{12} = 86.66 = 87}$

⟹In case 2:-

• drawings=2000(in middle of every month)
• rate= 8%

$\tt{⟹avg. \: period = \frac{total \: months \: }{2} \frac{12}{2} = 6}$

$\sf\green{⟹2000 \times \frac{8}{100} \times \frac{6}{12} = 80}$

⟹In case 3:-

• drawings=2000
• rate=8%

$\sf{⟹avg. \: period = \frac{total \: months - 1}{2} = \frac{11}{2} = 5.5}$

$\sf\pink{⟹2000 \times \frac{8}{100} \times \frac{5.5}{12} = 73.33 = 73}$

ie ,the interest on drawings of Vinod be 87,80,73 in these respective cases.