Question

A page from the passbook of Mr. Rohit is given below. The interest accrued for the period January to December 2006 at a certain rate of interest per annum is Rs. 377.40. without taking the principal as the nearest multiple of Rs. 10, calculate the rate:

Date	Particulars	Debit (Rs)	Credit (Rs)	Balance (Rs)
2006
Jan 1	Balance B/F			7,500.00
March 7	By Cheque		1,875.00
March 10	By Cash		625.00
July 17	To self	3,250.00
Oct 5	By Cheque		2,160.00
Dec 19	To Cheque	1,340.00

Answer 1

Balance on 1^st January = Rs. 7,500
Balance on 7^th March = Rs. 7,500 + Rs. 1,875 = Rs. 9,375
Balance on 10^th March = Rs. 9,375 + Rs. 625 = Rs. 10,000

Balance on 17^th July = Rs. 10,000 – Rs. 3,250 = Rs. 6,750
Balance on 5^th October = Rs. 6,750 + Rs. 2,160 = Rs. 8,910
Balance on 19^th December = Rs. 8,910 – Rs. 1,340 = Rs. 7,570
Minimum balance for January = Rs. 7,500
Minimum balance for February = Rs. 7,500
Minimum balance for March = Rs. 10,000
Minimum balance for April = Rs. 10,000
Minimum balance for May = Rs. 10,000
Minimum balance for June = Rs. 10,000
Minimum balance for July = Rs. 6,750
Minimum balance for August = Rs. 6,750
Minimum balance for September = Rs. 6,750
Minimum balance for October = Rs. 8,910
Minimum balance for November = Rs. 8,910
Minimum balance for December = Rs. 7,570
Total principal = Rs. 1,00,640
Interest = Rs. 377.40 and Time`= 1/12` year .

∴ Rate `= (Ixx100)/(Pxxr) % = (377,40 xx 100)/(1,00,640 xx1/12) = 4.5 %`