Question

2011
January,16	Liu sold goods	₹ 8,000
January,29	Liu purchase goods	₹ 6,000
February,10	Liu pays cash	₹ 6,000
February,10	Win accepts a bill drawn by Liu for one month	₹ 7,000

Find the amount (in Rs) on Interest Paid.

• A. $640.50$
• B. $615.45$
• C. $633.80$
• D. $605.45$

Answer 1

The correct option is B $615.45$

Due date	Amount Due to Win	Due from Win	Number of days from 1st jan 2001	Product
				Due to Win	Due from Win
2011 January, 1 January, 16 January, 29 February, 10 March, 13	Rs. ... .... 6,000 .... 7,000 ---------- 13,000 13,000 ---------- 26,000 -----------	Rs. 12,000 8,000 .... 6,000 .... ---------- 26,000 ----------- 26,000 -----------	0 15 28 40 71	Rs. ... ... 1,68,000 ... 4,97,000 ------------- 6,65,000 ------------- 6,65,000 -------------	Rs. ... 1,20,000 ... 2,40,000 ... ---------------- 3,60,000 3,05,000 -------------- 6,65,000 --------------

Let $1^{st}$ January, $2001$ be the base date.

Dividing $3,05,000$ by $13,000$ one gets $23$ days.
Since the products are in favour of Win and the amount against him, the average due date is $23$ days prior to $1^{st}$ January, $2011$ or $9^{th}$ December, $2010$.
Interest will be calculated on Rs. $13,000$ @ $18\%$ per annum for $96$ days
i.e. for the period from $9^{th}$ December $2010$ to ${15}^{th}$ March, $2011$;
The amount of interest is Rs. $615.45$.