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Drawings of ₹10,000 made evenly through the year attract interest at 10% p.a. The interest on drawings is approximately
A₹500
B₹250
C₹1,000
D₹100
Answer & Solution
Correct answer: A. ₹500
For drawings spread evenly over the year, average period is 6 months: 10,000 × 10% × 6/12 = ₹500.
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