Question

Calculate the interest on Drawings of Esha @ 9% p.a., if she withdrew ₹ 4,000 p.m. on the last day of every month for six months ending 31st March, 2026.

Answer 1

1. Total Drawings

Since she withdrew ₹ 4,000 per month for 6 months:

Total Drawings = 4,000 × 6 = 24,000

2. Average Period

The drawings are made on the last day of every month for the six-month period ending 31st March, 2026 (from October 2025 to March 2026):

Months left after the 1st drawing (31st October to 31st March): 5 months

Months left after the last drawing (31st March to 31st March): 0 months

Formula: `"Months left after first drawing + Months left after last drawing"/2`

Calculation: `(5 + 0)2 = 2.5` months

3. Interest Formula & Computation

Interest on Drawings = `"Total Drawings" xx "Rate"/100 xx "Average Period"/12`

Interest on Drawings = `24,000 xx 9/100 xx 2.5/12 = 450`