If a uniform amount of capital is systematically withdrawn by a partner at the end of each quarter, interest on the total aggregate yearly drawings is computed across an average timeline of:
- A
- B
- C
- D
Solution & Step-by-step Explanation
Using the average period technique formula for identical regular drawing patterns:
Since the first quarter ends 3 months into the year, there are remaining.The last quarter ends on the final day of the financial year, leaving remaining.
Since the first quarter ends 3 months into the year, there are remaining.The last quarter ends on the final day of the financial year, leaving remaining.