Question

Mr. S.K. Mishra had a Savings Bank Account in Punjab National Bank. His Passbook had the following entries:

Date	Particulars	Withdrawals (in ₹)	Deposits (in ₹)	Balance (in ₹)
1998, Jan. 8	By Cash	-	500·00	500·00
March 19	To Cheque No. 626	100·00	-	400·00
May 23	By Cheque	-	1500·00	1,900·00
July 29	To Withdrawals Slip	200·00	-	1,700·00
Sept 2	By Cash	-	1,300·00	3,000·00

If the interest is paid at the rate of 5% per annum at the end of September every year, calculate the amount he will get if he closes the account on October 30, of the same year.

Answer 1

As per entries of the Passbook page of Mrs. Mishra, we have:

Month	Minimum Balance between 10th day and the last day (in ₹)	Qualifying Amount for interest (in ₹)
Jan.	`{:(500),(500):}}`	500 x 2 = 1,00
Feb.
March	`{:(400),(400),(400):}}`	400 x 3 = 1,200
April
May
June	1,900	1,900
July	`{:(1700),(1700):}}`	1,700 x 2 = 3,400
Aug.
Sept.	3,000	3,000
Oct.	00	00
Total		₹10,500

∴ Principal for one month (i.e., `(1)/(12)`th of the year) = ₹10,500

Rate of interset = 5%
∴ Interest = `(10,500 xx 5 xx (1)/(12))/(100)`
= ₹ 43.75

The amount Mr. Mishra will get on closing the account on October 30 of the same year
= ₹ (3,000 + 43.75)
= ₹ 3,043.75

Note: As the account is closed on October 30, no amount has been shown for this month for interest.