1.34 I FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICSArithmetic
Now, the difference in Product is ` 1,28,000 (i.e., ` 3,08,000 - ` 1,80,000) and the difference in amount is
`4,000 (i.e., ` 9,000 - ` 5,000).No. of days from ‘0’ date =1,28,000
4,000
`
`
= 32 days
i.e., Average Due Date = 6.1.2012 + 32 days = 7.2.2012
Date if Settlement= 21.4.2012
Hence, No. of days from average due date to the date of settlement = 73 days∴ Amount of interest will be ` 40 i.e. 4,000` ×365 10073 5×Method (2) Where amount is lent in one instalment but repayment is made by various instalments This
method is just the opposite of Method (1) Stated above
Method of Calculation
Step 1. Calculate the number of days from the date of lending to the date of each repayment made.
Step 2. Ascertain the sum of those days/months/years.
Sept 3. Divide the sum so ascertained (in Step 2) by the number of instalments paid.
Step 4. The result will be the number of days/months by which the Average Due Date falls from the date
of taking such loans..
The same will be calculated with the help of the following :
Average Due Date:
= Date of taking loan +
Sum of days / months l years from the date of lending to date of repayment of each instalment
No. of instalments
Consider the following illustration :
Example 51 :
When repayment of loan is made by monthly instalments
X lent ` 3,000 to Y on 1st January 2012 to be repaid by 5 equal monthly instalments starting fron 1st February
subject to interest at 10% p.a. Y intends to repay the loan by single payment on average du< date. Find out
that date and total interest payable.
Solution :
Average Due Date = Date of taking loan +
Sum of days/months/years from the date of lending to the date of repayment of each instalment
No. of instalments
= Jan 1. + 1 2 3 4 5+ + + + 5
= Jan. 1+3 months
= April 1.