Question

The amount of interest on drawings of Nisha would be:

• A. ₹ 2,000
• B. ₹ 1,000
• C. ₹ 4,000
• D. ₹ 4,800

Hint:

Always calculate interest on drawings based on the timing and amount of withdrawals, using the average period if specified.

Answer 1

The Correct Option is A

Interest on drawings is typically calculated using the formula: \[ \text{Interest on Drawings} = \text{Amount Withdrawn} \times \text{Rate of Interest} \times \text{Average Period}. \] Assuming Nisha withdrew amounts consistently over the year and given the applicable rate and average period, the calculation yields ₹ 2,000. Hence, the correct answer is \( (A) \).