**SOLUTION**

**Total Drawings = 7,500 × 4 = Rs. 30,000Interest Rate = 10% p.a.**

**Case (a)**

**When equal amount is withdrawn in the beginning of each quarter, the interest on drawings is calculated for an average period of 7.5 months**

Interest on drawing = total drawing × Rate of drawing / 100 × Average month / 12

Interest on Ashok’s drawing = 30,000 × 10 / 100 × 7.5 / 12 = 1,875

Interest on drawing = total drawing × Rate of drawing / 100 × Average month / 12

Interest on Ashok’s drawing = 30,000 × 10 / 100 × 7.5 / 12 = 1,875

**Case (b)**

**When equal amount is withdrawn at the end of each quarter, the interest on drawings is calculated for an average period of 4.5 months**

Interest on drawing = total drawing × Rate of drawing / 100 × Average month / 12

Interest on Ashok’s drawing = 30,000 × 10 / 100 × 4.5 / 12 = 1,125

Interest on drawing = total drawing × Rate of drawing / 100 × Average month / 12

Interest on Ashok’s drawing = 30,000 × 10 / 100 × 4.5 / 12 = 1,125

**Case (c) **

**When equal amount is withdrawn in the middle of each quarter, the interest on drawings is calculated for an average period of 6 months**

Interest on drawing = total drawing × Rate of drawing / 100 × Average month / 12

Interest on Ashok’s drawing = 30,000 × 10 / 100 × 6 / 12 = 1,500

Interest on drawing = total drawing × Rate of drawing / 100 × Average month / 12

Interest on Ashok’s drawing = 30,000 × 10 / 100 × 6 / 12 = 1,500