CUET Preparation Today
| When equal amounts are withdrawn in the beginning of each quarter throughout the year, the interest on drawings are charged for how many months ? |
5.5 6.5 7.5 8.5 |
| 7.5 |
| If the amount is withdrawn at the beginning of each quarter, the interest is calculated on the total money withdrawn during the year, for a period of seven and half months and if withdrawn at the end of each quarter it will be calculated for a period of 4½ months. When equal amounts are withdrawn in the middle of each quarter throughout the year, the interest on drawings are charged for 6 months. further, when the date of drawings in each quarter is not mentioned, it is assumed that the amount is withdrawn evenly throughout the year and interest on drawings will be charged for the average period which is to be assumed as 6 months. Interest on Drawings = Total of drawings × Rate/100 × 7.5/12 |
