Question

Ram & Mohan withdrew for private use Rs 48,000 & Rs 36,000 respectively during the year evenly in the middle of every month. Interest is chargeable @ 10% p.a. on drawings. What is the total interest?

• A. Rs 3,600
• B. Rs 2,400
• C. Rs 4,200
• D. Rs 6,000

Answer 1

The correct option is C

Rs 4,200

Interest ( Ram ) = Rs 48,000 * 10% * $\frac{6}{12}$ = Rs 2,400

Interest ( Mohan ) = Rs 36,000 * 10% * $\frac{6}{12}$ = Rs 1,800

Total Interest = Rs 2,400 + Rs 1,800 = Rs 4,200