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Question
Mr. Sen has a savings bank account with a post office.
(i) calculate the interest earned by Mr. Sen during the year 2010 at 6.5% per annum payable in December if the entries during the year in his passbook are as given below:
| Date | Particulars | Withdrawals (Rs) | Deposits (Rs) |
| 2.1.10 | By cash | 250.00 | |
| 9.1.10 | By Cheque | 825.00 | |
| 13.3.10 | To Cash | 325.00 | |
| 24.7.10 | By Cash | 1,237.00 | |
| 6.10.10 | To Cheque | 250.00 | |
| 22.12.10 | By Cheque | 958.00 |
(ii) Also, calculate the interest when the principal for every month is taken as the nearest multiple of Rs. 10.
Solution
Balance on `2^"nd"` Jan = Rs. 250
Balance on `9^"th"` Jan.= Rs. 250 + Rs. 825 = Rs. 1,075
Balance on `13^"th"` Mar.= Rs. 1,075 – Rs. 325 = Rs. 750
Balance on `24^"th"` July = Rs. 750 + Rs. 1,237 = Rs. 1,987
Balance on `6^"th"` Oct. = Rs. 1,987 – Rs. 250 = Rs. 1,737
Balance on `22^"nd"` Dec. = Rs. 1,737 + Rs. 958 = Rs. 2,695
(i) Minimum balance for Jan.= Rs. 1,075
Minimum balance for Feb. = Rs. 1,075
Minimum balance for Mar. = Rs. 750
Minimum balance for Apr. = Rs. 750
Minimum balance for May = Rs. 750
Minimum balance for June= Rs. 750
Minimum balance for July = Rs. 750
Minimum balance for Aug. = Rs. 1,987
Minimum balance for Sept. = Rs. 1,987
Minimum balance for Oct. = Rs. 1,737
Minimum balance for Nov. = Rs. 1,737
Minimum balance for Dec. = Rs. 1,737
Total principal = Rs. 15,085
Rate = 6.5%p.a. and time=`1/12` year
∴ Interest = `(PxxRxxT)/100 = (15,085xx6.5xx1)/(100xx12) = Rs. 81.71 `
(ii) Minimum balance for Jan.= Rs. 1,080
Minimum balance for Feb. = Rs. 1,080
Minimum balance for Mar. = Rs. 750
Minimum balance for Apr. = Rs. 750
Minimum balance for May = Rs. 750
Minimum balance for June= Rs. 750
Minimum balance for July = Rs. 750
Minimum balance for Aug. = Rs. 1,990
Minimum balance for Sept. = Rs. 1,990
Minimum balance for Oct. = Rs. 1,740
Minimum balance for Nov. = Rs. 1,740
Minimum balance for Dec. = Rs. 1,740
Total principal = Rs. 15,110
Rate = 6.5% p.a and time = 1/12 year .
∴ Interest = `(PxxRxxt)/100 = (15,110 xx6.5xx1)/(100xx12) = Rs. 81.84`
