Question

Mr. X, draws ₹ 500 per month continuously for nine months starting from July, 2018 on the first day of each month for the year ending March 31, 2019. Interest on drawings will be charged @ 12% per annum. What amount of interest on drawings would be charged? (1)
(a) ₹200 (b) ₹225 (c) ₹292.50 (d) ₹270

Answer 1

Answer:

B) 224

Explanation:

I don't know correctly

Answer 2

Answer:

Intrest on drawings = 292.50

Explanation:

QUESTION:-

• Mr. X, draws ₹ 500 per month continuously for nine months
• starting from July, 2018 on the first day of each month for the year ending March 31, 2019
• Interest on drawings will be charged @ 12% per annum

REQUIRED:-

• To find intrest on capital

SOLUTION:-

Intrest = Total amount × Rate × Average period/12

Total amount = 5,00 × 9 = 4,500

Rate = 12%

average period = 6.5 (⁽¹² ⁺ ¹⁾/₁₂)

Intrest = 4,500 × 12% × $\frac{6.5}{12}$

Intrest = 292.50

∴Intrest on drawings = 292.50