Question

A page from the ‘Savings Bank’ account of Priyanka is given below:

Date	Particulars	Amount withdrawn (Rs.)	Amount deposited (Rs.)	Balance (Rs.)
03/04/2006	B/F			4000.00
05/04/2006	By cash		2000.00	6000.00
18/04/2006	By cheque		6000.00	12000.00
25/05/2006	By cheque	5000.00		7000.00
30/05/2006	By cash		3000.00	10000.00
20/07/2006	By self	4000.00		6000.00
10/09/2006	By cash		2000.00	8000.00
19/09/2006	To cheque	1000.00		7000.00

If the interest earned by Priyanka for the period ending September 2006 is Rs. 175, the find the rate of interest.

 

Answer 1

Qualifying principal for various months:

Month	Principal
April	Rs. 6000
May	Rs. 7000
June	Rs. 10000
July	Rs. 6000
August	Rs. 6000
September	Rs. 7000
Total	Rs. 42000

Here, P= Rs. 42,000

Let R% be the rate of interest and T = `1/12` year

Given that the interest, I  = Rs.175

Now, `I= (PxxRxxT)/100`

`=> 175 = (42000 xx R xx 1)/(100xx 12)`

`=> R = (175xx100xx12)/42000 = 5%`

Thus, the rate of interest is 5%.