A partner withdrew Rs.2000 at the beginning of every month.the rate of interest on drawings is 10%per annum. What is the amt. of interest?
To calculate the amount of interest, we need to determine the total amount withdrawn by the partner and then calculate the interest on that amount.
Let's break down the problem step by step:
1. Determine the total amount withdrawn by the partner in a year:
Since the partner withdraws Rs.2000 at the beginning of every month, the total amount withdrawn in a year can be calculated by multiplying the monthly withdrawal by 12 (number of months in a year).
Total withdrawal in a year = Rs.2000 * 12 = Rs.24,000
2. Calculate the interest on the total withdrawal:
The interest on the total withdrawal can be calculated by multiplying the total withdrawal amount by the rate of interest. Here, the rate of interest is 10% per annum.
Interest = (Total withdrawal in a year) * (Rate of interest)
= Rs.24,000 * (10/100)
= Rs.2,400
Therefore, the amount of interest on the partner's withdrawals is Rs.2,400.