Question

Give the average period in months for charging interest on drawing if the same amount is withdrawn in the beginning of each quarter.

Answer 1

Answer:

7.5 months

Explanation:

Given that same amount is drawn beginning of each quarter

Suppose if ₹1,000 is drawn beginning of each quarter

There are 4 quarters for every period and 3 months in each quarter

if ₹1,000 is drawn on 1st January left out months will be 12 months and at the end i.e of the last quarter ₹1,000 is drawn left out months will be 3 ( interest is always calculated on the outstanding months)

12+3/2=7.5 months i.e 7.5/12