Multiple choice

Ram is a partner in a firm. He made the following drawings: | 1st July | Rs. 200 | | --- | --- | | 1st August | Rs. 200 | | 1st September | Rs. 300 | | 1st November | Rs. 50 | | 1st February | Rs. 100 | If the rate of interest on drawings is 6% and accounts are closed on 31st March, then what is the interest on drawings?

  1. Rs. 29.75

  2. Rs. 35

  3. Rs. 30

  4. Rs. 40
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A Correct answer
Explanation

Calculate product of amount and months remaining until March 31: July (9 months), Aug (8), Sept (7), Nov (5), Feb (2). Product = (200*9) + (200*8) + (300*7) + (50*5) + (100*2) = 1800 + 1600 + 2100 + 250 + 200 = 5950. Interest = (5950 * 6 * 1) / (100 * 12) = 29.75.

AI explanation

Using the simple interest method for partner drawings, calculate the period each amount remains in the business until March 31: 9 months for Rs. 200, 8 months for Rs. 200, 7 months for Rs. 300, 5 months for Rs. 50, and 2 months for Rs. 100. Applying the formula Interest = (Sum * Rate * Months)/(100 * 12) at 6%, the interest totals (200*6*9 + 200*6*8 + 300*6*7 + 50*6*5 + 100*6*2)/1200. The numerator is 10800 + 9600 + 12600 + 1500 + 1200 = 35700, and dividing by 1200 gives Rs. 29.75.

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