Question

Shabir withdrew Rs. 8,000 p.m on first if every month during the year. Calculate interest on drawing @ 9% p.a.


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Answer 1

Answer:

IOD is 4680

Explanation:

Drawings=8000p.m

so total Drawings in a year=96000

Rate of interest=9%

Average period=Month left after 1st drawing+ Month left after last drawing/2

=12+1/2=6.5

Interest on Drawing=Total drawing×rate/100×average period/12

= 96000×9/100×6.5/12

=4680

Hope it helps you