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Mr. Chaudhary Opened a Saving’S Bank Account at State Bank of India on 1st April 2007.F the Bank Pays Interest at the Rate of 5% per Annum, Find the Interest Paid

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Question

Mr. Chaudhary opened a Saving’s Bank Account at State Bank of India on 1st April 2007.

Date Particulars Withdrawals
(in ₹)
Deposits
(in ₹)
Balance
(in ₹)
1st April 2007 By Cash - 8,550·00 8,550·00
12th April 2007 To Self 1,200·00 - 7,350·00
24th April 2007 By cash - 4,550·00 11,900·00
8th July 2007 By Cheque - 1,550·00 13,400·00
10th Sept. 2007 By Cheque - 3,500·00 16,900·00
17th Sept. 2007 To Cheque 2,500·00 - 14,400·00
11th Oct. 2007 By Cash - 800·00 15,200·00
6th Jan. 2008 To Self 2,000·00 - 13,200·00
9th March 2008 By Cheque - 950·00 14,150·00

If the bank pays interest at the rate of 5% per annum, find the interest paid on 1st April, 2008. Give your answer correct to the nearest rupee.

Sum
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Solution

Minimum balance for the month of April      =  ₹ 7,350
Minimum balance for the month of May      = ₹ 11,900
Minimum balance for the month of June      = ₹ 11,900
Minimum balance for the month of July       =  ₹ 13,400
Minimum balance for the month of Aug.      = ₹ 13,400
Minimum balance for the month of Sept.     =  ₹ 14,400
Minimum balance for the month of Oct.       = ₹ 14,400
Minimum balance for the month of Nov.      = ₹ 15,200
Minimum balance for the month of Dec.      =  ₹ 15,200
Minimum balance for the month of Jan.       =  ₹ 13,200
Minimum balance for the month of Feb.       =  ₹ 13,200
Minimum balance for the month of March    = ₹ 14,150
                                                         Total       = ₹ 1,57,700
⇒ Principal for one month  = ₹ 1,57,700

Interest paid on 1st April    = `(1,57,700 xx 5 xx 1)/(100 xx 12)`
= ₹ 657·08
= ₹ 657 (to the nearest rupee)

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