Answer :
Explanation:
To calculate the interest on drawings, we can use the following formula:
\[ \text{Interest} = \text{Amount} \times \text{Rate of Interest} \times \frac{\text{Period}}{12} \]
where:
- \(\text{Amount}\) is the drawing amount.
- \(\text{Rate of Interest}\) is 9% or 0.09.
- \(\text{Period}\) is the number of months the amount was outstanding during the year, divided by 12 to convert it to years.
We'll calculate the interest for each drawing separately and then sum them up.
1. For the drawing on 30th April 2018:
- Amount: 10,000
- Period: 11 months
- Interest: \( 10,000 \times 0.09 \times \frac{11}{12} \)
2. For the drawing on 1st July 2018:
- Amount: 15,000
- Period: 9 months
- Interest: \( 15,000 \times 0.09 \times \frac{9}{12} \)
3. For the drawing on 1st October 2018:
- Amount: 18,000
- Period: 6 months
- Interest: \( 18,000 \times 0.09 \times \frac{6}{12} \)
4. For the drawing on 30th November 2018:
- Amount: 12,000
- Period: 4 months
- Interest: \( 12,000 \times 0.09 \times \frac{4}{12} \)
5. For the drawing on 31st March 2018:
- Amount: 20,000
- Period: 0 months
- Interest: \( 20,000 \times 0.09 \times \frac{0}{12} = 0 \)
Let's calculate each interest separately.
### Calculation:
1. Drawing on 30th April 2018:
\[ \text{Interest} = 10,000 \times 0.09 \times \frac{11}{12} = 10,000 \times 0.09 \times 0.9167 = 825 \]
2. Drawing on 1st July 2018:
\[ \text{Interest} = 15,000 \times 0.09 \times \frac{9}{12} = 15,000 \times 0.09 \times 0.75 = 1,012.5 \]
3. Drawing on 1st October 2018:
\[ \text{Interest} = 18,000 \times 0.09 \times \frac{6}{12} = 18,000 \times 0.09 \times 0.5 = 810 \]
4. Drawing on 30th November 2018:
\[ \text{Interest} = 12,000 \times 0.09 \times \frac{4}{12} = 12,000 \times 0.09 \times 0.3333 = 360 \]
5. Drawing on 31st March 2018:
\[ \text{Interest} = 20,000 \times 0.09 \times \frac{0}{12} = 0 \]
### Total Interest:
\[ \text{Total Interest} = 825 + 1,012.5 + 810 + 360 + 0 = 3,007.5 \]
So, the total interest on drawings for the given period is 3,007.5.