Calculate interest on drawings of Shivani if she withdraws ₹2,500 per month during the year at the rate of 10% p.a.

₹1,500

The correct answer is option 1- ₹1,500.

Total Drawings = ₹2,500 X 12
                        = ₹30,000

Interest on drawings = 30,000 X 10/100 X 6/12
                                  = ₹1,500

NOTE- When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount was withdrawn evenly throughout the year. For calculation of interest, the period would be taken as six months, which is the average period assuming, that amount is withdrawn evenly in the middle of the month, throughout the year.