Question

calculate the interest on drawing of Mr Aditya @ 8% per annum for the year ended 31st March 2016 in each of the following alternative cases first if we will do 5000 the beginning of each quarter if he withdrew 6000 at the end of each quarter if it due 10000 in the middle of each quarter​

Answer 1

Answer:

5,000 × 4 = 20,000

20,000 × 8% × 7.5/12 = 1,000

6,000 × 4 = 24,000

24,000 × 8% × 4.5/12 = 720

10,000 × 4 = 40,000

40,000 × 8% × 6/12 = 1,600

Answer 2

GIVEN :   Case 1- When he withdrew in the beginning of each quarter

Drawing = 5,000 for each quarter ; interest rate = 8%

Case 2- When he withdrew in the end of each quarter

Drawing = 6,000 at the end of each quarter ; interest rate = 8%

Case 3-  When he withdrew in the middle of each quarter

Drawing = 10,000 in the middle of each quarter ; interest rate = 8%

TO FIND :  Interest on  drawing

SOLUTION :

Case 1 - Drawing of each quarter = 5,000

There are 4 quarters in a year, so drawing for the year = 5,000 × 4

                                                                                            = 20,000

Time Period = $\frac{ months left after that (drawing in the beginning) + months left after that(drawing in the end of the year) }{2}$

So, time period = $\frac{12+3}{2}$

                           =$\frac{15}{2}$

                          = 7.5

Interest on drawing = $\frac{20000X 7.5X 8 }{100 X 12 }$

                                  = 1,000

Case 2 - Drawing for the year = 6000 × 4

                                                   = 24,000

Time Period =  $\frac{9+0}{2}$

                      = 4.5

Interest on drawing = $\frac{24000 X 4.5 X 8}{100 X 12 }$

                                 = 720

Case 3 - Drawing for the year = 10,000 × 4

                                                   = 40,000

Time Period = $\frac{10.5 + 1.5 }{2}$

                      = 6

Interest on drawing = $\frac{40000 X 6 X 8}{12 X 100}$

                                 = 1,600

Interest on drawing when Aditya withdrew in the beginning of each quarter is 1,000 and when in the end is 720 and when in the middle is 1,600.