Calculate interest on drawings @ 12% p.a. for Gambhir if he withdrew 7 2,000 once at the beginning of each month

Dear Student,
Interest on Drawings = Total Drawings x Rate/100 x Average Period/12
= 864,000 x 12% x 6.5/12
​​​​​​= 56,160

Calculation:-
Average Period = (Time left after 1st Drawings + Time left after last Drawings ) / 2
= (12 + 1) / 2
= 6.5

Regards

  • 1
What are you looking for?