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Virat Opened a Savings Bank Account in a Bank on 16th April 2010. His Pass Book Shows the Following Entries: Calculate the Interest Virat Earned at the End of 31st July 2010 at 4% per Annum Interest. What Sum of Money Will He Receive If He Closed the Account on 1st August 2010?

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Question

Virat opened a Savings Bank account in a bank on 16th April 2010. His pass book shows the following entries:

Date Particulars

Withdrawal

(Rs.)

Deposit (Rs.) Balance (Rs.)
April 16, 2010 , By cash - 2500 2500
April 28th By cheque - 3000 5500
May 9th To cheque 850 - 4650
May 15th By cash   1600 6250
May 24th To cash 1000 - 5250
June 4th To cash 500 - 4750
June 30th To cheque - 2400 7150
July 3rd By cash - 1800 8950

Calculate the interest Virat earned at the end of 31st July 2010 at 4% per annum interest. What sum of money will he receive if he closed the account on 1st August 2010?

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Solution

Principal for the month of April = Rs. 0

Principal for the month of May = Rs. 4650

Principal for the month of June = Rs. 4750

Principal for the month of July = Rs. 8950

Total Principal for one month = Rs. 18,350

Time = `1/12` year, Rate = 4 %

Interest earned = `(18350 xx 1 xx 4)/(100 xx 12) = 61.17`

Money received on closing the account on 1st August, 2010

= Last Balance + Interest earned

= Rs. (8950 + 61.17)

= Rs. 9011.17

 

 

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8000 5% ...... 800 ......

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