Question

hiral, withdraws rupees 500 in the beginning of every month. if 10% p.a. interest is chargeable on drawings, determine annual drawings and interest on drawings.​

Answer 1

Answer:

Annual drawings = Rs 6,000 and Interest on drawings = Rs 325

Explanation:

Given :

Money withdrawn = Rs 500

In the beginning of every month

Interest rate = 10 %

To Find :

Annual drawings and Interest on drawing

Solution :

$\sf{Interest\:on\:drawings = Total\: amount\:of\:drawings \times \dfrac{Rate \: of \: interest}{100} \times \dfrac{Average\:period}{12}}$

Total amount withdrawn =

⇒ 500 × 12

⇒ 6,000

★ Interest on drawings =

⇒ $6000 \times \dfrac{10}{100} \times \dfrac{6.5}{12}$

⇒ 325.00

Interest on drawings = Rs 325.00

Therefore,

Annual drawings = Rs 6,000 and Interest on drawings = Rs 325

Answer 2

Given :-

Rate = 10 %

Withdrawal = ₹500

To Find :-

Annual drawing

Solution :-

Amount withdrawal in one month = 500

Amount withdrawal in 1 year = 500 × 12

Amount withdrawal in 1 year = ₹6000

Now

Interest = 6000 × 10 × 6.5/100 × 12

Interest = 60 × 10 × 6.5/12

Interest = 5 × 10 × 6.5

Interest = 50 × 6.5

Interest = 325