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Mr. S.K. Mishra Had a Savings Bank Account in Punjab National Bank. His Passbook Had the Following Entries:If the Interest is Paid at the Rate of 5% per Annum at the End of September Every Year,

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Question

Mr. S.K. Mishra had a Savings Bank Account in Punjab National Bank. His Passbook had the following entries:

Date Particulars Withdrawals
(in ₹)
Deposits
(in ₹)
Balance
(in ₹)
1998, Jan. 8 By Cash - 500·00 500·00
March 19 To Cheque No. 626 100·00 - 400·00
May 23 By Cheque - 1500·00 1,900·00
July 29 To Withdrawals Slip 200·00 - 1,700·00
Sept 2 By Cash - 1,300·00 3,000·00

If the interest is paid at the rate of 5% per annum at the end of September every year, calculate the amount he will get if he closes the account on October 30, of the same year.

Sum
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Solution

As per entries of the Passbook page of Mrs. Mishra, we have:

Month Minimum Balance between 10th day and the last day (in ₹) Qualifying Amount for interest (in ₹)
Jan. `{:(500),(500):}}` 500 x 2 = 1,00
Feb.
March `{:(400),(400),(400):}}` 400 x 3 = 1,200
April
May
June 1,900 1,900
July `{:(1700),(1700):}}` 1,700 x 2 = 3,400
Aug.
Sept. 3,000 3,000
Oct. 00 00
Total   ₹10,500

∴ Principal for one month (i.e., `(1)/(12)`th of the year) = ₹10,500

Rate of interset = 5%
∴ Interest = `(10,500 xx 5 xx (1)/(12))/(100)`
= ₹ 43.75

The amount Mr. Mishra will get on closing the account on October 30 of the same year
= ₹ (3,000 + 43.75)
= ₹ 3,043.75

Note: As the account is closed on October 30, no amount has been shown for this month for interest.

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