Question

Ram & Mohan withdrew for private use Rs. 1,20,000 & Rs. 80,000 respectively Interest is chargeable @ 6% p.a. on drawings. What is the total interest?

• A. Rs 3,600
• B. Rs 2,400
• C. Rs. 3,000
• D. Rs. 6,000

Answer 1

The correct option is D

Rs. 6,000

Interest ( Ram ) = Rs 1,20,000 * 6% * $\frac{6}{12}$ = Rs. 3,600

Interest ( Mohan ) = Rs 80,000 * 6% * $\frac{6}{12}$ = Rs. 2,400