Question

Ruchika and Harshita were partners in a firm. Ruchika had withdrawn rupee 9,000 at the end of each quarter throughout the year. The interest to be charged on Ruchika’s drawings at 6% p.a. will be:

• A. rupee 540
• B. rupee 2,160
• C. rupee 1,080
• D. rupee 810

Hint:

When calculating interest on periodic drawings, always use the correct average period. For end-of-quarter withdrawals, the average period is 7.5 months.

Answer 1

The Correct Option is D

Total drawings at the end of each quarter: rupee 9,000.

The average period for quarterly drawings is 7.5 months (equivalent to 7.5/12 years). The interest calculation is as follows: \[ \text{Interest} = \text{Total Drawings} \times {Rate} \times {Time} \] Consequently, \[ \text{Interest} = rupee 36,000 \times 6\% \times \frac{7.5}{12} = rupee 810 \]