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
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