If fixed amount is withdrawn by a partner on the first day of each quarter interest on the total amo...........

If fixed amount is withdrawn by a partner on the first day of each quarter, interest on the total amount is charged for …………….. months

4.5

7.5

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Explanation:

- When a partner withdraws a fixed amount on the first day of each quarter, interest is generally charged for the average period of the withdrawn amounts.

- Each quarterly withdrawal is in effect for differing lengths of time. The first withdrawal remains for 12 months, the second for 9 months, the third for 6 months, and the last for 3 months.

- To calculate the interest period, sum the duration (i.e., 12 + 9 + 6 + 3 months) and divide by the number of quarters (4).

- This results in an average period of 30/4 = 7.5 months for which interest is charged.

Answer: Option 3: 7.5 months.