Question

A page from the passbook of Mrs. Rama Bhalla is given below:

Date	Particulars	Withdrawals (In Rs)	Deposits (In Rs)	Balance (In Rs)
January 1	B/F			2,000.00
January 9	By Cash		200.00	2,200.00
February 10	To Cheque	500.00		1,700.00
February 24	By Cheque		300.00	2,000.00
July 29	To Cheque	200.00		1,800.00
November 7	By Cash		300.00	2,100.00
December 8	By Cash		200.00	2,300.00

Calculate the interest to Mrs. Bhalla for the period from January 2004 to December 2004, at the rate of 5% per annum.

Answer 1

Minimum balance for Jan = Rs. 2,200
Minimum balance for Feb = Rs. 1,700
Minimum balance for Mar.= Rs. 2,000
Minimum balance for Apr.= Rs. 2,000
Minimum balance for May = Rs. 2,000
Minimum balance for June = Rs. 2,000
Minimum balance for July = Rs. 1,800
Minimum balance for Aug.= Rs. 1,800
Minimum balance for Sept.= Rs. 1,800
Minimum balance for Oct. = Rs. 1,800
Minimum balance for Nov. = Rs. 2,100
Minimum balance for Dec. = Rs. 2,300
Total principal = Rs. 23,500

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

∴ Interest =`(PxxRxxT)/100 = (23,500 xx 5 xx1)/(100 xx12) = Rs. 97.92`