A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest in a year on Rs. 6000 for the total period of @ given rate of interest):
A)5 months
B)6 months
C)7 months
D)12 months

Question

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The interest for each withdrawal accumulates from the month of withdrawal until the end of the year. Since A withdraws Rs. 500 every month starting from January 16th, the first withdrawal in January will accrue interest for 12 months, the February withdrawal for 11 months, and so on, until the December withdrawal, which does not accrue any interest within the year. The total amount on which interest is calculated is equivalent to a single withdrawal of Rs. 6000 for 6 months, as this averages the varying interest periods for each withdrawal throughout the year.

A Is Drawing Rs