Question

Vishnu and Mishu are partners in a firm. Mishu draws a fixed amount at the end of every quarter. Interest on drawings is charged @ 15\% p.a. At the end of the year, interest on Mishu's drawings amounted to \rupee9,000. Interest on drawings was charged on drawings of Mishu for:

• A. 6 months
• B. 7 $\frac{1}{2}$ months
• C. 4 $\frac{1}{2}$ months
• D. 4 months

Hint:

For periodic drawings, calculate the average period using: $$\text{Average period} = \frac{\text{Sum of months remaining}}{\text{Number of intervals}}.$$ Adjust the formula based on whether the drawings are made at the beginning or end of the interval.

Answer 1

The Correct Option is C

For fixed quarterly drawings made at the end of each quarter, the average period for interest calculation is: $$\text{Average period} = \frac{(9 + 6 + 3 + 0)}{4} \text{ months} = 4.5 \text{ months}.$$ Thus, the interest is charged for an average of 4 $\frac{1}{2}$ months.