1Calculate interest on drawing of Vimal if the withdrew Rs.48000 in year withdrawn evenly:
- At beginning of each Quarter
- In the middle of each Quarter
- At end of each Quarter rate is 10% P. A.
Solution:
- Case I: Drawing made on begnning of each quarter interest on drawing = Amount x Rate/100 x 7.5/12 = 48,000 x 10/100 x 7.5/12 = Rs.3,000
- Case II: Drawing made in middle of each quarter interest on drawing = Amount x Rate/100 x 6/12 = 48,000 x 10/100 x 6/12 = Rs.2,400
- Case III Drawings made at end of each quarter interest on drawing = Amount x Rate/100 x 4.5/12 = 48,000x10/100 x 4.5/12 = Rs.1800
Similarly Interest can be calculated by following formulas:
Half yearly Drawings for year when:
- Drawings are made in the begnning of each period (halfyear) interest on drawing = Amount x Rate/100 x 9/12
- Drawings are made in the middle of each period (half year) interes on drawing = Amount x Rate/100 x 6/12
- Drawings are made at the end of each period (half year) interest on drawing = Amount x Rate/100 x 3/12
For monthly drawings for 6 months:
- Drawings are made in beginning of each month Interest = Amount x Rate/100 x 3.5/12.
- When drawings are made in the middle of each month interest = Amount x Rate/100 x 3/12.
