Question

Mark 1
Calculate interest on Ram's drawing
@ 10% irrespective of time period if
he withdrew Rs 2000 at the end of
each quarter.​

Answer 1

Given:

• Ram withdrew Rs 2,000 at the end of each quarter at a rate of 10%.

To find: The interest on drawings.

Answer:

The formula to find the interest when the drawings are made at the end of each quarter is as follows:

$\sf Interest\ on\ drawings\ =\ \dfrac{Total\ drawings\ \times\ Rate}{100}\ \times\ \dfrac{4\frac{1}{2}}{12}$

Since the time period isn't mentioned in the question, the total drawings will be considered for the full year.

We have,

• total drawings = 2,000 × 12 = 24,000
• rate of interest = 10%

Substituting these values into the formula,

$\sf Interest\ on\ drawings\ =\ \dfrac{24,000\ \times\ 10}{100}\ \times\ \dfrac{4.5}{12}\\\\\\Interest\ on\ drawings\ =\ \dfrac{10,800}{12}\\\\\\Interest\ on\ drawings\ =\ \bf Rs\ 900$

Therefore, the interest on drawings is Rs 900.