Jaron, a partner in IT Travels, withdrew the same amount of money at the end of each quarter, for his personal use. The firm charged ₹465 as interest on his drawings. Interest on drawings is to be charged at 8% per annum. What amount was withdrawn by him at the end of each quarter?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹3,875
When a fixed amount is withdrawn at the end of each quarter, interest on the total drawings is charged for an average period of 4½ months ((9 + 0) ÷ 2). Working backwards from the interest gives the total drawings.
Interest = Total drawings × 8/100 × 4.5/12
₹465 = Total drawings × 0.03
Total drawings = ₹465 ÷ 0.03 = ₹15,500
Amount withdrawn each quarter = ₹15,500 ÷ 4 = ₹3,875
Note: ₹15,500 is the total for the year, not the amount of each quarterly drawing.
NCERT (2026-27 edition):
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