Question

X, a partner of X and Y Associates draw Rs, 4000 every month at the mid of the month for six months. Calculate interest on drawing at 5%.

• A. Rs. 300
• B. Rs. 295
• C. Rs. 285
• D. Rs. 310

Answer 1

Answer: (A)

Rs. 300

So here,

4000 per month x 6 month = 24,000

then,

24,000 x 6% = 1,200 for year

then, 1,200 x 6/12 = 600 for 6 month

so, at the mid of month the interest on drawing is Rs.300.