Question

Mohan withdrew ₹4,000 at the beginning of each quarter. Calculate interest on drawings at the rate of 6% p.a.

Hint:

For drawings at the beginning of each quarter, the average period is taken as 7.5 months.

Answer 1

Mohan withdraws ₹4,000 at the beginning of each quarter. \[ \text{Total Drawings} = 4,000 \times 4 = 16,000 \] For drawings made at the beginning of each quarter, the average period is: \[ \frac{12 + 9 + 6 + 3}{4} = 7.5 \text{ months} \] \[ \text{Interest on Drawings} = 16,000 \times \frac{6}{100} \times \frac{7.5}{12} = ₹600 \]