1.

Calculate interest on drawings of Mr. Ashok @ 10% p.a. for the year ended 31st March, 2018, in each of the following alternative cases: Case 1. If he withdrew ₹ 7,500 in the beginning of each quarte. Case 2. If he withdrew ₹ 7,500 at the end of each quarter. Case 3. If he withdrew ₹ 7,500 during the middle of each quarter.

Answer»

tion:Solution :Formula used :★ Interest on drawings =Total amount withdrawn = ₹ 7,500 × 4 = ₹ 30,000Rate of interest = 10% p.a.Case 1 :• Case 1. If he withdrew ₹ 7,500 in the BEGINNING of each QUARTER:Average period = 7.5Interest on drawings = ₹ 1,875Case 2 :• Case 2. If he withdrew ₹ 7,500 at the end of each quarter:Average period = 4.5Interest on drawings = ₹ 1,125Case 3 :• Case 3. If he withdrew ₹ 7,500 during the middle of each quarter:Average period = 6Interest on drawings = ₹ 1,500Therefore, Interest on drawings =Case 1 = ₹ 1,875Case 2 = ₹ 1,125Case 3 = ₹ 1,500



Discussion

No Comment Found

Related InterviewSolutions