Give the average period, in months, for charging interest on drawings of a fixed amount, withdrawn at the beginning of each quarter.
Give the average period, in months, for charging interest on drawings of a fixed amount, withdrawn at the beginning of each quarter.
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Average Month would be
12 + 3/2 = 7.5 Months
For example A withdraw ₹ 2,000 at the begening of each quarter. The rate of interest @ 10% p.a. is charged on drawings.
A’s interest on drawings would be as follows
2000 * 4 * 10% * 7.5/12 = ₹ 500
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