Question

How you will calculate the average period and the interest on drawings when the amount is withdrawn in the middle of each month?

Options

• Average period = Total period in months/2

• Average period = Total period in months/4

• Average period = Total period in months/6

• None of the above

Answer 1

Average period = Total period in months/2

Explanation:

Nothing is added or subtracted from the total period when money is withdrawn in the middle of the month.

Average period = Total period in months/2