Question

calculate the interest on drawing @10%p.a for the year 2016-2017 ,if a partner withdrew RS. 12000 p.m in the beginning of every month
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Answer 1

Answer:

Interest on drawing =

Amount * rate * average period

average period = time left after ist drawing +

time left after last drawing /,2

average period = 12+ 1/2 = 6.5 month

annual drawing = 12000*12= 144000

interest on drawing = 144000*10/100*6.5/12

= 7800