Question

Mrs. N. Batra has a savings bank account with the Punjab National bank. She had the following transactions (from 1^st January, 2007 to 31^st December, 2007) with the bank:
(i) 01-01-2007; B/F Rs. 8,764/-
(ii) 13-03-2007; deposited Rs. 6,482
(iii) 22-06-2007; withdrew Rs. 4,369
(iv) 09-08-2007; withdrew Rs. 1,333
(v) 24-11-2007; Deposited Rs. 2,158
Calculate the interest the accrured upto 31^st December, 2007: if the rate of interest is 5% compounded yearly and the principle for every month is taken as the nearest multiple of Rs.10.
Taking the rate of interest as 6% per annum, find the amount that Mr. verma gets on closing the account.

Answer 1

Balance on 01-01-2007 = Rs. 8,764
Balance on13-03-2007 = Rs. 8,764 + Rs. 6,482 = Rs. 15,246
Balance on 22-06-2007 = Rs. 15,246 – Rs. 4,369 = Rs. 10,877
Balance on 09-08-2007 = Rs. 10,877 – Rs. 1,333 = Rs. 9,544

Balance on 24-11-2007 = Rs. 9,544 + Rs. 2,158 = Rs. 11,702
Minimum balance for January = Rs. 8,760
Minimum balance for February = Rs. 8,760
Minimum balance for March = Rs. 8,760
Minimum balance for April = Rs. 15,250
Minimum balance for May = Rs. 15,250
Minimum balance for June = Rs. 10,880
Minimum balance for July = Rs. 10,880
Minimum balance for August = Rs. 9,540
Minimum balance for September = Rs. 9,540
Minimum balance for October = Rs. 9,540
Minimum balance for November = Rs. 9,540
Minimum balance for December = Rs. 11,700
Total principal = Rs. 1,28,400

Rate = 5% p.a. and Time = `1/12` year .

∴ Interest = ` (PxxRxxT) /100 = (1,28,400xx5xx1 )/(100xx12) = Rs. 535 Ans` .