Question

If drawings are made in the middle of every quarter, then interest is calculated for: *

Answer 1

If Drawings are made in the Middle of Year :

The Interest is Calculated As :

$\tt \: Average \: Period = \dfrac{ Total \: Months \: }{2} = \dfrac{12}{2} = 6$

$\tt \: Interest = Amount \: \times \frac{Avg. \: Period}{12} \times \frac{Rate}{100}$