Question

Mr. Verma opened a savings bank account with the state bank of India on 5th April 2007 with Rs. 8,500. For the financial year 2007-2008, the other transactions with the bank are given below:
(i) 15-05.2007; deposited Rs. 3,700
(ii) 27-07-2007; withdrew Rs. 2,400
(iii) 06-09-2007; withdrew Rs. 1,600
(iv) 18-12-2007; deposited Rs. 4,500
(v) 29-01-2008; Deposited Rs. 1,900
(vi) 23-03-2008; account closed.
Taking the rate of interest as 6% per annum, find the amount that Mr. Verma gets on closing the account.

Answer 1

Balance on 5-4-2007 = Rs. 8,500
Balance on 15-5-2007 = Rs. 8,500 + Rs. 3,700 = Rs. 12,200
Balance on 27-7-2007 = Rs. 12,200 – Rs. 2,400 = Rs. 9,800
Balance on 6-9-2007 = Rs. 9,800 – Rs. 1,600 = Rs. 8,200
Balance on 18-12-2007 = Rs. 8,200 + Rs. 4,500 = Rs. 12,700
Balance on 29-1-2008 = Rs. 12,700 + Rs. 1,900 = Rs. 14,600

Balance on 23-3-2008 = Rs. 14,600
Minimum balance for April = Rs. 8,500
Minimum balance for May = Rs. 8,500
Minimum balance for June = Rs. 12,200
Minimum balance for July = Rs. 9,800
Minimum balance for August = Rs. 9,800
Minimum balance for September = Rs. 8,200
Minimum balance for October = Rs. 8,200
Minimum balance for November = Rs. 8,200
Minimum balance for December = Rs. 8,200
Minimum balance for January = Rs. 12,700
Minimum balance for February = Rs. 14,600
Minimum balance for March = Rs. 0
Total principal = Rs. 1,08,900
Rate= 6%p.a. and Time =`1/12` year 

∴ Interest  = ` (PxxRxxT)/100 = (1,08,900 xx 6 xx 1)/(100 xx 12 ) = Rs. 544.50`

The amount that he gets on closing the account
=Rs. 14,600 + Rs. 544.50
= Rs. 15,144.50 Ans.