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Question
A page from the savings bank account of Mr. Prateek if given below.
| Date | Particulars | Withdrawals (In Rs) | Deposits (In Rs) | Balance (In Rs) |
| January 1st 2006 | B/F | - | - | 1,270 |
| January 7th 2006 | By Cheque | - | 2,310 | 3,580 |
| March 9th 2006 | To self | 2,000 | - | 1,580 |
| March 26th 2006 | By cash | - | 6,200 | 7,780 |
| June 10th 2006 | To Cheque | 4,500 | - | 3,280 |
| July 15th 2006 | By clearing | - | 2,630 | 5,910 |
| October 18th 2006 | To Cheque | 530 | - | 5,380 |
| October 27th 2006 | To self | 2,690 | - | 2,690 |
| November 3rd 2006 | By cash | - | 1,500 | 4,190 |
| December 6th 2006 | To cheque | 950 | - | 3,240 |
| December 23rd 2006 | By Transfer | - | 2,920 | 6,160 |
If h receives Rs. 198 as interest on 1st January, 2007, Find the rate of interest paid by the bank.
Solution
Principle for the month of Jan = Rs. 3,580
Principle for the month of Feb = Rs. 3,580
Principle for the month of march = Rs. 1,580
Principle for the month of April = Rs. 7,780
Principle for the month of May = Rs. 7,780
Principle for the month of June = Rs. 3,280
Principle for the month of July = Rs. 3,280
Principle for the month of Aug = Rs. 5,910
Principle for the month of Sept = Rs. 5,910
Principle for the month of Oct = Rs. 2,690
Principle for the month of Nov = Rs. 4,190
Principle for the month of Dec = Rs. 3,240
Total Equivalent principle for 1 month = Rs. 52,800
∴ Rate% =` (I xx100) /(PxxT) % = (198xx100xx12)/(52,800xx1) %= 4.5%`
