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A Page from the Savings Bank Account of Mr. Prateek is Given Below:If He Receives ₹198 as Interest on 1st January, 2007, Find the Rate of Interest Paid by the Bank.

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Question

A page from the Savings Bank Account of Mr. Prateek is given below:

Date Particulars Withdrawals
(in ₹)
Deposits
(in ₹)
Balance
(in ₹)
January 1st, 2006 B/F - - 1,270
January 7th, 2006 By Cheque - 2,310 3,580
March 9th, 2006 To Self 2,000 - 1,580
March 26th, 2006 By Cash - 6,200 7,780
June 10th, 2006 To Cheque 4,500 - 3,280
July 15th, 2006 By Clearing - 2,630  5,910
October 18th, 2006 To Cheque 530 - 5,380
October 27th, 2006 To Self 2,690 - 2,690
November 3rd, 2006 By Cash - 1,500 4,190
December 6th, 2006 To Cheque 950 - 3,240
December 23rd, 2006 By Transfer - 2,920 6,160

If he receives ₹198 as interest on 1st January 2007, find the rate of interest paid by the bank.

Sum
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Solution

Month                   Qualifying amount(₹)
January             =       3,580
February           =       3,580
March               =       1,580
April                  =       7,780
May                   =       7,780
June                  =        3,280
July                   =        3,280
August              =        5,910
September       =         5,910
October            =        2,690
November        =        4,190
December        =         3,240
                   Total        52,800

Interset = `(52,800 xx "R" xx (1)/(2))/(100)`

198 = `(528)/(12)"R"`

R = `(198 xx 12)/(528)`

= 4.5%.

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