Question

If the drawings are made at regular intervals, as on first day of each month, interest on drawings is calculated for and average period of

Answer 1

Explanation:

interest is to be calculated on average period of

12+1/2.

=6.5 months

Answer 2

ANSWER :

❖ 6½ months or 6.5 months

• ✎ If the drawings of certain fixed amount are made at regular intervals, as on first day of each month during a year, interest on drawings is calculated for an average period of 6½ months or 6.5 months.

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EXPLANATION :

⊚ The drawings of certain fixed amount can be made on regular basis and the amount is withdrawn on the first day of every month throughout the year.

$\: \: \: \: \: \: \: \: \: \: \: \: \: \:$  In this situation, interest will be calculated on the total drawings at the specified rate for the average period which is calculated as under :↣

• $\bigstar \: \: \tt{Average \: \: Period = \dfrac{Time \: \: left \: \: after \: \: first \: \: drawings + Time \: \: left \: \: after \: \: last \: \: drawings}{2}}$

$\Longrightarrow \: \tt{Average \: \: Period = \dfrac{12 \: months + 1 \: months}{2}}$

$\Longrightarrow \: \tt{Average \: \: Period = \dfrac{13 \: months}{2}}$

$\therefore \: \tt{Average \: \: Period = \underline{6 \: \dfrac{1}{2} \: months }\: \: Or, \: \: \underline{6.5 \: months}}$

Hence,

• Interest on Drawings will be charged for the Average Period of 6½ months or 6.5 months.

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✠ Note :-

• ➺ When drawings is made on the first day of each month throughout the year, then the time left after the first drawings is 12 months as it include the first month of the year along with the rest of 11 months.

• ➺ Again, the time left after the last drawings is 1 month which is the last month of the year.