Question

If a fixed amount is withdrawn on the middle day of every month of a calendar year, the interest on the total amount of drawings will be calculated for ________.

• A. 4.5 months
• B. 5.5 months
• C. 6 months
• D. 6.5 months

Answer 1

The correct option is C 6 months

If a fixed amount is withdrawn on the middle day of every month of the calendar year, the interest on the total amount of drawings will be calculated for 6 months. Average period will be calculated as:-

= Months left after first drawing + months left after last drawing

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2

= 11.5 + 0.5

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2

= 6months