Question

if rs 1000 is withdrawn in the beginning of every month for first six months@10%pa then calculate interest on drawing​

Answer 1

Answer:275

SOLUTION:-

Interest on drawing = Total drawings x rate of interest x average period/12

                                = 1,000 x 12 x 5/100 x 5.5/12 (WN 1)

                                = 12,000 x 5% x 5.5/12

                                = RS-275.

Working note:-

Average period = Beginning period of use + end period of use

                            ------------------------------------------------------------------

                                                               2

                          = 11 + 0

                            --------

                                2

                         = 5.5