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If a fixed amount is withdrawn on the last day of every quarter of a calendar year, the interest on the total amount of drawings will be calculated for __________.

  • a)
    4.5

  • b)
    5.5

  • c)
    6.5

  • d)
    7.5

Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If a fixed amount is withdrawn on the last day of every quarter of a c...
Solution:

To find the average period, we need to find the time between two consecutive withdrawals and divide it by the total number of withdrawals.

Given that the partner withdraws consistently at the end of each quarter for a year:

- Number of withdrawals in a year = 4 (since there are 4 quarters in a year)
- Time between two consecutive withdrawals = 3 months (since the partner withdraws at the end of each quarter)
- Total time period = 12 months (since the withdrawals happen for a year)

Therefore, the average period between two consecutive withdrawals is:

Total time period / Number of withdrawals = 12 / 4 = 3 months

Hence, the correct option is (a) 3.
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Community Answer
If a fixed amount is withdrawn on the last day of every quarter of a c...
It will be 4.5, I don't believe you will give this type of disgusting answer.
av period = time left after 1 withdrawal+ time left after last withdrawal/2
9+0/2 = 4.5
very bad app
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