Practicing Success
When equal amounts are withdrawn in the beginning of each quarter throughout the year, then the Interest on drawings will be charged with the help of which formula? |
Interest on Drawings = Total of drawings × Rate/100 × 6/12 Interest on Drawings = Total of drawings × Rate/100 × 7.5/12 Interest on Drawings = Total of drawings × Rate/100 × 4.5/12 Interest on Drawings = Total of drawings × Rate/100 × 5/12 |
Interest on Drawings = Total of drawings × Rate/100 × 7.5/12 |
When equal amounts are withdrawn in the beginning of each quarter throughout the year: Average period = (12+3)/2 = 7.5 months Interest on Drawings = Total of drawings × Rate/100 × 7.5/12 |