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Question
Select the most appropriate alternative from those given below and rewrite the statement.
If dates of drawings are not given, interest on drawings is charged for __________________ months.
Options
three
six
nine
twelve
Solution
If dates of drawings are not given, interest on drawings is charged for six months.
Explanation: When the date of drawings is not given, interest on drawings is charged for an average period of six months. In such cases, it is assumed that a fixed amount is withdrawn as drawings in the middle of every month.
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