Question

Sheena’s interest on drawings will be:

• A. ₹ 5,000
• B. ₹ 4,000
• C. ₹ 3,000
• D. ₹ 2,000

Hint:

To calculate interest on drawings, use the formula by appropriately substituting the amount of drawings, the rate of interest, and the time period for which the drawings are withdrawn.

Answer 1

The Correct Option is D

The interest on drawings is computed using the formula:\[Interest} = Amount of Drawings} \times Rate of Interest} \times \frac{Time Period}}{12}\]This formula, when applied with the given amount of drawings, rate of interest, and time period, ascertains the interest on Sheena’s drawings. As per the data supplied:\[Interest} = (calculation details based on given values)} = ₹ 2,000.\]