Question

Rajan withdraws 10,000 at the beginning of every half-year period for personal expenses. Interest on drawing will be ___ if rate is @10% p.a.

full solution pls​

Answer 1

Drawings at beginning of year = 10,000

So interest will be charged for the whole year

Interest = 10% x 10,000 x 12/12  

= 1,000 x 1

= 1,000

Drawings at beginning of half-year = 10,000

So interest will be charged for 6 months out of the whole year

Interest = 10% x 10,000 x 6/12

= 10% x 10,000 x 1/2

= 500

So Interest on total drawings = 1,500

 

Other technique

Interest = Drawings x Rate x Average period

Interest = 20,000 x 10% x ((12/12 + 6/12) ÷ 2)  

= 20,000 x 10% x ((18/12) ÷ 2)

= 2,000 x (18/24)

= 2,000 x 9/12

= 1,500

Answer 2

Answer:

Explanation:

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