Question

Compute interest from the following details given below :

Average due date – 12.04.2013, Total Amount due – Rs. 4,200,

Actual date of settlement – 30.06.2013, Rate of Interest – 7% p.a.​

Answer 1

Explanation:

Calculation of Interest by Average Due Date Method (With Examples)!

If a person owes a number of sums to another person on different dates, he may like to pay the whole amount on such a day as will involve neither party a loss of interest. Such a day is known as Average Due Date.

It is calculated in the following manner:

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(1) Fix one of the due dates as the base date.

(2) Calculate the number of days of each one of the other due dates away from the base date.