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A Page from the Savings Bank Account of Mr Prateek is Given Below: If He Receives Rs. 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 Withdrawal
(In Rs.)
Deposit
(In Rs.)
Balances
(In Rs.)
January 1st, 2006 B/F - - 1270
January 7th, 2006 By Cheque - 2310 3580
March 9th, 2006 To Self 2000 - 1580
June 26th, 2006 By Cash - 6200 7780
June 10th 2006 To Cheque 4500 - 3280
July 15th, 2006 By Clearing - 2630 5910
October 18th, 2006 To Cheque 530 - 5380
October 27th, 2006 To Self 2690 - 2690
November 3rd, 2006 By Cash - 1500 4190
December 6th, 2006 To Cheque 950 - 3240
December 23rd, 2006 By Transfer - 2920 6260

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

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Solution

Principal for January = Rs. 3580
Principal for February = Rs. 3580
Principal for March = Rs. 1580
Principal for April = Rs. 7780
Principal for May = Rs. 7780
Principal for June = Rs. 3280
Principal for July = Rs. 3280
Principal for August = Rs. 5910
Principal for September = Rs. 5910
Principal for October = Rs. 2690
Principal for November = Rs. 4190
Principal for December = Rs. 3240
Total equivalent principal for 1 month = Rs. 52,800

`:. Rate % = (I xx 100)/(P xx T) % = (198 xx 100 xx 12)/(52800 xx 1) = 4.5%`

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2011-2012 (March)

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