Question

Mr. Burman open a saving back account with Bank of India on 3^rd April 2007 with a cash deposit of Rs 5,000/-. Subsequently, he deposited Rs 16,500/- by cheque on 11^th April 2007, withdraw Rs 4,000/- on 10^th May, paid Rs 3,500 for insurance by cheque on 7^th July 2007, deposited Rs. 6,000/- in cash on 9^th August 2007 and withdrew Rs 1,500/- on 12^th Oct 2007.

If he closed the account on 14^th December and if the rate of simple interest is 4% pa, then find the amount he received on closing the account.

Answer 1

If he closed the acoount on 14th December and if the rate of simple interest is 4°/o pa, then find the amount he received on closing the account. Pis. note that there are June, September and November month where no transactions were made but the bank will give interest based on the amount which is reflected in the last month.

Months	Minimum balance between 10th day and the last day
Apr	5000
May	17500
June	17500
July	14000
Aug	20000
Sep	20000
Oct	18500
Nov	18500

Total principal for at the end of November= 1,31,000 

Interest = `(131000 xx 4 xx 1)/(100 xx 12) = 436.67`

Thus, interest= Rs 437

Hence, while closing the account, Mr. Burman will get Principal + interest which amounts to:

Rs 18,500/- + Rs 437/- = Rs 18, 937/-