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Question
John had a S.B. Account in Bank of Baroda. His passbook had the following entries:
| Date | Particulars | Amount Withdrawn (In Rs) |
Amount Deposits (In Rs) |
Balance (In Rs) |
| Jan 1, 2000 Jan, 8 Feb 18 May 19 July 15 Oct 7 |
By Balance By cash To Cheque By Cash To self By cash |
- - 10,500 - 2,400 - |
- 6,000 - 6,300 - 3,600 |
9,600 15,600 5,100 11,400 9,000 12,600 |
On October 30, 2000 John received his transfer order and closed the account. If the amount of interest he received on closing the account on 30th, Oct 2000 is Rs. 310; calculate the rate of interest per annum.
Solution
Minimum balance for January = Rs. 15,600
Minimum balance for February = Rs. 5,100
Minimum balance for March = Rs. 5,100
Minimum balance for April = Rs. 5,100
Minimum balance for May = Rs. 5,100
Minimum balance for June = Rs. 11,400
Minimum balance for July= Rs. 9,000
Minimum balance for August = Rs. 9,000
Minimum balance for September = Rs. 9,000
Minimum balance for October = Rs. 0
Total principal = Rs. 74,400
Received interest = Rs. 310 and time =`1/12`year
∴ Rate = `(I xx 100)/(pxxr) = Rs. (310xx100)/(74,400 xx 1/12) = 5% Ans.`
