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Mr. Dhoni Has an Account in the Union Bank of India. the Following Entries Are from His Passbook:

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Question

Mr. Dhoni has an account in the Union Bank of India. The following entries are from his passbook:

Date Particulars Withdrawals
(in ₹)
Deposits
(in ₹)
Balance
(in ₹)
Jan 3, 07 B/F - - 2,642·00
Jan 16 To self 640.00 - 2,002·00
March 5 By cash - 850·00 2,852·00
April 10 To self 1130.00 - 1,722·00
April 10 By cheque - 650·00 2372.00
June 15 By cash 577.00 - 1,795·00

Calculate the interest from January 2007 to June 2007 at a rate of 4% per annum.

Sum
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Solution

Qualifying amount for
Jan         2007 =  ₹ 2,002
Feb        2007 =  ₹ 2,002
March   2007 =  ₹ 2,852
April      2007 =  ₹ 1,722
May      2007 =  ₹ 2,372
June     2007 =  ₹ 1,795
            Total      ₹ 12,745
₹ 12,745 is treated as the principal of one month for calculating the interest.

Interest = `("P" xx "T" xx "R")/(100)`

= `(12,745 xx 4 xx 1)/(12 xx 100)`

= ₹ 42·483

= ₹ 42·48

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