Calculate interest on drawings if an amount of ₹7,500 is withdrawn at the end of bimonthly for the year. Rate of interest on drawing is 8% p.a.

₹1,500

The correct answer is Option (1) → ₹1,500

Bimonthly drawings means drawings are made after every two months. So, drawings are made 6 times in 1 year.

Total Drawings = 7500 × 6
                      = 45000

Rate = 8% p.a.

Average Period (Months) = $\frac{\text{Months left after ist drawing + Months left after last drawing}}{2}$

$=\frac{10+0}{2}$ = 5 months

Interest on drawings = Total drawings × $\frac{\text{Rate of interest}}{100} × \frac{\text{Average period}}{12}$

= $45000 \times \frac{8}{100} \times \frac{5}{12} = ₹1500$