Menon and Thomas are partners in a firm. They share profits and losses equally, their monthly drawings are Rs. 2000 each. Interest on the drawing is to be charged @10% p.a. Calculate the interest on Menon's drawing for the year 2015 assuming drawing are made,1) in the beginning of every month2) at the end of every month3) in the middle of every month.
Given: Monthly drawing of Menon and Thomas is Rs2000
Interest rate is 10%p.a
To do:
1) in the beginning of every month.
2)at the end of every month.
3)in the middle of every month.
Solution:
Case (1) : If money is drawn at the beginning of every month :
Like January 1, February 1, March 1,...December 1 of 2015
First withdrawal is done on January 1, which is 12 months ago
Last withdrawal is done on December 1 which is 1 month ago.
So average time is $\frac{12+1}{2} = \frac{13}{2}$
Case (2) : If money is drawn in the middle of every month:
First withdrawal is done on January 15, which is 11 and half months ago
Last withdrawal on December 15, which is half month ago.
So average time =$\frac{11\frac{1}{2}+\frac{1}{2}}{2}$
average time = 6 months
Case (3) : If money is drawn in the end of every month:
First withdrawal is done on January 31, which is 11 months ago
Last withdrawal is done on December 31 which is 0 month ago.
So average time =$\frac{11+0}{2}$
Average time = $\frac{11}{2}$ months.
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