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When the same amount is withdrawn at the beginning of every month, the first drawing earns interest for 12 months and the last for 1 month, so on average each rupee is out for (12 + 1)/2 = 6.5 months.
Total drawings = Rs. 3,000 × 12 = Rs. 36,000
Average period = 6.5 months
Interest on drawings = 36,000 × 9/100 × 6.5/12 = Rs. 1,755
Drawings at the end of each month give an average of 5.5 months and Rs. 1,485, which is why that figure sits among the options.
NCERT (2026-27 edition):
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