Question

The entires in a savings bank passbook are as given below:

Date	Particulars	Particulars Withdrawals (In Rs)	Deposits (In Rs)	Balance (In Rs)
01.01.03 01.02.03 12.02.03 05.04.03 15.04.03 09.05.03 04.06.03	B/F By cash To cheque By Cash To cheque By cash By Cash	5,000.00 4,250.00	11,500.00 3,750.00 1,500 1,500	14,000.00 25.500.00 20,500.00 24,250.00 20,000.00 21,500.00 23,000.00

Calculate the interest for six months (January to June) at 4% per annum on the minimum balance on or after the tenth day of each month

Answer 1

Minimum balance for Jan. = Rs. 14,000
Minimum balance for Feb. = Rs. 20,500
Minimum balance for Mar. = Rs. 20,500
Minimum balance for Apr. = Rs. 20,000
Minimum balance for May = Rs. 21,500
Minimum balance for June = Rs. 23,000
Total principal = Rs. 1,19,500

Rate = 4% p.a. and Time ` = 1/12 ` year

∴ Interest = `(PxxRxxT)/100 = (1,19,500xx4xx1)/(100xx12) = Rs. 398.33`