Question

Calculate intrest on drawingof mr.ranjith at 10%if the withdraw rs.96000 in a year evenly a. At the beginning of the each quarter b.at end of the each quarter

Answer 1

Answer:

Explanation:

ANSWER

Total drawings= 7500 * 4

                       =30000

Rate= 10%

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

Note: When equal amount of drawings is withdrawn at the beginning of each quarter, interest is calculated for a period of 7.5 months.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 7500 at the end of each quarter-

Note: When equal amount of drawings is withdrawn at the end of each quarter, interest is calculated for a period of 4.5 months.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 7500 during the middle of each quarter-

Note: When equal amount of drawings is withdrawn during the middle of each quarter, interest is calculated for a period of 6 months.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