Question

Amount of interest to be charged on Hitesh’s drawings will be:

• A. Rs.225
• B. Rs.4,500
• C. Rs.300
• D. Rs.7,200

Hint:

When calculating interest on drawings for a specific period, use the formula \( {Amount} \times {Rate} \times {Time (in years)} \).

Answer 1

The Correct Option is C

Hitesh's withdrawal was Rs.9,000 on November 1st, 2022. Interest on drawings for the period November to March (5 months) is calculated as follows: \[ {Interest: } Rs.9,000 \times \frac{8}{100} \times \frac{5}{12} = Rs.300 \]