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Mr. Choudhury Opened a Saving’S Bank Account at the State Bank of India on 1st April 2007. the Entries of One Year as Shown in His Pass Book Are Given Below: Ind the Interest Paid on 1st April, 2008.

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Question

Mr Choudhury opened a Saving Bank Account at State Bank of India on 1st April 2007. The entries of one year as shown in his passbook are given below.

Date Particulars Withdrawals (in Rs.) Deposits (in Rs.) Balance (in Rs.)
Ist April 2007 By Cash - 8550.00 8550.00
12th- April 2007 To Self 1200.00 -- 7350.00
24th April 2007 By Cash - 4550.00 11900.00
8th July 2007 By Cheque - 1500.00 13400.00
10th Sept. 2007 By Cheque - 3500.00 16900.00
17th Sept. 2007 By Cheque 2500.00 - 14400.00
11th Oct. 2007 By Cash - 800.00 15200.00
6th Jan. 2008 To Self 2000.00 - 13200.00
9th March 2008 By Cheque - 950.00 14150.00

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.

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Solution

Month Balance (in Rs)
Apr 2007 7350
May 11900
Jun 11900
Jul 13400
Aug 13400
Sep 14400
Oct 14400
Nov 15200
Dec  15200
Jan 2008 13200
Feb 13200
Mar 14150
Total 157800

∴  Principal for 1 month is Rs. 157700, and Rate = 5% p.a.                     

Interest paid = `="Principal x Rate x Time"/100 = (157700xx5xx(1/12))/100 = (263 xx 55)/2`

= `1315/2` =  657.08 = Rs 657  (in rupees)

The interest paid on `1^"st"` April, 2008 is Rs. 657.

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