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Preeti Dabral 1 year, 8 months ago
Calculation of interest on drawings:
Total drawings = 6 {tex}\times {/tex} 4000 = 24000
Number of months = {tex}[\text {Time left after 1st drawing + Time left after last drawing}] \over 2{/tex}
= {tex}[6+1] \over 2{/tex} = 3.5 months
Hence, Interest on drawings = 24,000 {tex}\times{/tex} {tex}5 \over 100{/tex} {tex}\times{/tex} {tex}3.5 \over 12{/tex} = 350
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