Question

In a partnership farm a partner withdrew 5000 per month on the first day of every month during the year for personal expenses if interest on drawing is charged 6 percent per annum the int charged will be

Answer 1

Question:-

In a partnership firm a partner withdrew 5000/- per month on the first day of every month during the year for personal expenses if interest on drawings is charged 6% per annum. Calculate interest on drawings.

Solution:-

• To calculate interest on drawings:-

$\rm\purple{ \:interest \:on \: drawings \: = drawings \times \frac{rate}{100} \times period}$

$\sf \: amount = 5000$

$\sf \: rate = 6\%$

(on first day of every month)

• To calculate average period:-

$\rm\red{ \: average \:period = \frac{total \: periods \: in \: months + 1}{2} = \frac{12 + 1}{2} = 6.5 \: months}$

$\sf \: interst \: on \: drawings \: = >$

$\sf\implies5000 \times \frac{6}{100} \times \frac{6.5}{12} = 162.5$

$= > \sf162.5 = 163$

$\rm\blue{\: so \: interst \: on \: drawings \: = 163}$