Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9% per annum.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 1755
When the same amount is withdrawn at the beginning of every month, the first drawing earns interest for 12 months and the last for 1 month, so on average each drawing is out for 6.5 months.
Total drawings = Rs. 3,000 x 12 = Rs. 36,000
Interest = Rs. 36,000 x 9/100 x 6.5/12
= Rs. 3,240 x 6.5/12 = Rs. 1,755
Withdrawals at the end of each month would give an average of 5.5 months (Rs. 1,485), and the middle of each month 6 months; read the timing before you pick the period.
NCERT (2026-27 edition):
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