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.

Rs. 1755

The correct answer is Option (4) → Rs. 1755

Total Drawings=Rs 3,000/month×12 months = 36,000

Average Period =6.5

Interest=Total Drawings × rate x Average Period/2

             = 36,000 x 9/100 x 6.5/12

             = 1,755