Calculate the interest on drawings of partner Babita who draws ₹4,500 on the first day of every month. The rate of interest is 15% p.a..
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹4,387.
Total drawings = 4,500 x 12
= 54,000
Average period is 6.5 months
Interest on drawings = Total drawings X Rate of interest/100 X Average period/12
Interest on drawings = 54,000 X 15/100 X 6.5/12
= ₹4,387.5