*A partner draws Rs. 500 at the end of each month. The amount of inter

1.	A partner draws Rs. 500 at the end of each month. The amount of interest on drawings @6% p.a. will be ____(a) Rs. 360(b) Rs. 165(c) Rs. 195(d) Rs. 180
Answer» Answer: b). Rs. 165 The AMOUNT of interest on drawings will be Rs. 165 Explanation: Given : • A partner draws Rs. 500 • At the end of each month • RATE of interest = 6 % p.a. To find : • The amount of interest on drawings Solution : Total amount withdrawn = 500 × 12 Total amount withdrawn = Rs 6,000 Average Period = 5.5 Interest on drawings = Total amount of drawings × Rate of interest × Average period / 12 $\sf{Total \: amount \: of \: Drawings \: \times \: \dfrac{Rate \: of \: Interest}{100} \times \dfrac{Average \: Period}{12}}$ Interest on drawings = $\sf{\longrightarrow 6000 \: \times \: \dfrac{6}{100} \times \: \dfrac{5.5}{12}}$ $\longrightarrow \: 165$ Therefore, (b). Rs. 165 The amount of interest on drawings will be Rs. 165

A partner draws Rs. 500 at the end of each month. The amount of interest on drawings @6% p.a. will be ____(a) Rs. 360(b) Rs. 165(c) Rs. 195(d) Rs. 180

Answer»

Answer:

b). Rs. 165

The AMOUNT of interest on drawings will be Rs. 165

Explanation:

Given :

• A partner draws Rs. 500

• At the end of each month

• RATE of interest = 6 % p.a.

To find :

• The amount of interest on drawings

Solution :

Total amount withdrawn = 500 × 12

Total amount withdrawn = Rs 6,000

Average Period = 5.5

Interest on drawings = Total amount of drawings × Rate of interest × Average period / 12

$\sf{Total \: amount \: of \: Drawings \: \times \: \dfrac{Rate \: of \: Interest}{100} \times \dfrac{Average \: Period}{12}}$

Interest on drawings =

$\sf{\longrightarrow 6000 \: \times \: \dfrac{6}{100} \times \: \dfrac{5.5}{12}}$

$\longrightarrow \: 165$

Therefore,

(b). Rs. 165

The amount of interest on drawings will be Rs. 165

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