Question

Ms. Chitra opened a saving bank account with SBI on 05.04.2007 with a cheque deposit of Rs 11,000/.Subsequently, she took out Rs 3,200/- on 12.05.2007; deposited a cheque of Rs. 8,800/- on 03.06.2007 and paid Rs 2,000/- by cheque on 18.06.2007.

If the rate of simple interest was 5% pa compounded at the end of March and September, find her balance on 1.04.2008

Answer 1

If the rate of simple interest was 5°/o pa compounded at the end of March and September, find her balance on 1.04.2008 According to the entries in passbook, the minimum balance tor ditterent months are as follows: 

Months	Minimum balance between 10th day and the last day	Minimum balance in nearest multiple of 10
2007,April	11000	11000
May	7800	7800
June	14600	14600
July	14600	14600
August	14600	14600
September	14600	14600
October	14600 + 322 = 14922	14920
November	14922	14920
December	14922	14920
2008,January	14922	14920
February	14922	14920
March	14922	14920

Total principal at the end of September 2007

=Rs 11000 + 7800 + 14600 x 4

=Rs 77200

Therefore interest at the end of sep. 2007

= `(77200 xx 5 xx 1)/(100 xx 12) = 321.66`

Thus interest earned is Rs 322 

Again, principal at the end of March, 2008 = 14920x6 = 89520 

Therefore interest at the end of Mar. 2008

= `(89520 xx 5 xx 1)/(100 xx 12) = 373`

Hence, Account balance as on 01.04.2008 is

= Rs 14920 +Rs 373 

=Rs 15293