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Mr. Ram is a partner in a form He draw RS. 3000 from the firm in the beginning of every monthinterest on drawings is to be charged at the rate of 9% for annum calculate interest on drawingsfor the year 2022

Question

Mr. Ram is a partner in a form He draw RS. 3000 from the firm in the beginning of every monthinterest on drawings is to be charged at the rate of 9% for annum calculate interest on drawingsfor the year 2022

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Solution

To calculate the interest on Mr. Ram's drawings for the year 2022, we need to follow these steps:

  1. First, we need to understand that Mr. Ram draws Rs. 3000 at the beginning of each month. This means that he will have drawn this amount 12 times in a year.

  2. The total amount drawn by Mr. Ram in a year is Rs. 3000 * 12 = Rs. 36,000.

  3. The interest rate is 9% per annum.

  4. However, since the money is withdrawn at the beginning of each month, the average period of the drawing will be 6.5 months (as it is halfway through the year).

  5. So, the interest on the drawings is calculated using the formula: Interest = Total Drawings * Rate of Interest * Average Period of Drawings / 12 * 100.

  6. Substituting the values into the formula, we get: Interest = 36,000 * 9/100 * 6.5/12 = Rs. 1,755.

So, the interest on Mr. Ram's drawings for the year 2022 is Rs. 1,755.

This problem has been solved

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