Read the following passage and answer the question.

Partnership firm and partners are considered separate from each other. When partners withdraw money from business for their personal use, then the term used for such withdrawal of money is termed as Drawings. Since drawing is a type of loan, provided to the partners and they have to pay interest on the amount withdrawn from the firm, which is known as interest on drawings.

In a partnership firm, a partner withdrew ₹5,000 per month on the last day of every month. If interest on drawings is charged at 6% p.a., how much interest will be charged?

₹1,650

The correct answer is option 2- ₹1,650.

Total drawings = 5,000 X 12
                        = ₹60,000

Average period = (11+0)/2
                         = 5.5

Interest on drawings = 60,000 X 5.5/12 X 6/100
                                  = ₹1,650