Ram is a partner in a firm.He withdrew Rs 2000 per month on the last day of every month during the year 2014. If interest on drawings is charged @ 9% p.a the interest charged will be
Answers
Answer:
Interest on drawings will be ₹ 990.
Explanation:
Given:
Withdrawn amount = ₹ 2,000 per month
Time of withdrawal = At the last day of every month
Rate of interest = 9% P.a.
Interest on drawings = ??
Solution :
Total amount of drawings = 2,000 × 12
Total amount of drawings = ₹ 24,000
If drawings are made at the end of every month :
Average period = 5.5
★ Interest on drawings =
\sf{\longrightarrow{Amount \: of \: drawings \: \times \: \dfrac{Rate \: of \: interest}{100} \: \times \: \dfrac{Average \: period}{12}}}⟶Amountofdrawings×
100
Rateofinterest
×
12
Averageperiod
\longrightarrow{\sf{24,000 \: \times \: \dfrac{9}{100} \: \times \: \dfrac{5.5}{12}}}⟶24,000×
100
9
×
12
5.5
\sf{\longrightarrow{990}}⟶990
Interest on drawings = ₹ 990
∴ Interest on drawings will be ₹ 990
Interest on drawing = Rs. 990
Step-by-step explanation:
• Ram withdrews Rs 2000 at the end of each month.
annual drawing = 12 × 2,000 = Rs. 24,000
annual drawing = Rs. 24,000
average period = 5.5
Rate = ,9%
Interest on drawing = annual drawing × rate × average period /12
= 24,000 × (9/100) × (5.5/12)
= 990
Interest on drawing = Rs. 990
Hence, Interest on drawing = Rs. 990