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Mr. Mishra Has a Savings Bank Account in Allahabad Bank. His Passbook Entries Are as Follows:Rate of Interest Paid by the Bank is 4.5% per Annum. Mr. Mishra Closes His Account on 30th October, 2007. - Mathematics

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Question

Mr. Mishra has a Savings Bank Account in Allahabad Bank. His passbook entries are as follows:

Date Particulars Amount
Withdrawals(₹)
Amount Deposits(₹) Amount Balance(₹)
Jan. 4, 2007 By Cash - 1,000·00 1,000·00
Jan. 11, 2007 By Cheque - 3,000·00 4,000·00
Feb. 3, 2007 By Cash - 2,500·00 6,500·00
Feb. 7, 2007 To Cheque 2,000·00 - 4,500·00
March 3, 2007 By Cash - 5,000·00 9,500·00
May 25, 2007 By Cash - 2,000·00 11,500·000
June 7, 2007 By Cash - 3,500·00 15,000·00
Aug 29, 2007 To Cheque 1,000·00 - 14,000·00

Rate of interest paid by the bank is 4.5% per annum. Mr. Mishra closes his account on 30th October, 2007. Find the interest he receives.

Sum
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Solution

Minimum Balance for
Jan              =     ₹1,000
Feb              =     ₹4,500
March          =     ₹9,500
April             =     ₹9,500
May              =     ₹9,500
June             =    ₹15,000
July              =    ₹15,000
August         =    ₹14,000
September  =     ₹14,000
Total                    ₹92,000

₹ 92,000 is treated as principal of one month for calculating the interest

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

= `(92,000 xx 4·5 xx (1)/(12))/(100)`

= ₹ 345.

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