Question

viral, withdraws rupees 2,000 in the middle of every month. if 8% p.a. interest is chargeable on drawings, determine annual drawings and interest on drawings.​

Answer 1

Answer:

Annual drawings = ₹ 24,000 and intrest = ₹ 960

Explanation:

★ Given:

Amount withdrawn = ₹2,000

In the middle of every month

Intrest rate = 8%

To find:

Intrest on drawings

Solution

Intrest = Total amt × Rate × Average period

★ Total amount withdrawn

⇒ 2,000 × 12

⇒ 24,000

★ Intrest on drawings=

⇒ 24,000 × $\frac{8}{100}$ × $\frac{6}{12}$

⇒ 960

Intrest on drawings = ₹ 960.00

There fore,

★ Annual drawings = ₹ 24,000 and intrest = ₹ 960

Answer 2

Explanation:

Solution :

Total Amount = 2,000 × 12

= 24,000

Total Amount = Rs. 24,000

Viral withdraws in the middle of every month :

Average Period = 6

Total Amount = Rs. 24,000

Interest on drawings = ??

• Interest on drawings = Total amount of drawings × Rate of interest × Average Period/12

= 24,000 × (8/100) × (6/12)

= 960

Interest on drawings = Rs. 960

Hence, Annual drawings = Rs. 24,000 and Interest on drawings = Rs. 960.