Question

A man opened a savings bank account with a bank on 22^nd Feb., 1998 and deposited Rs. 300. He further deposited Rs. 1,500 on 5^th march 1998 and withdrew Rs. 500 on 12^th April 1998. Assuming that he neither deposited not withdrew any money up to the last day of May 1998; write the amounts on which he would receive interest for:

(i) Feb., 1998

(ii) March, 98

(iii) April, 98

(iv) May, 98

Answer 1

Balance on 22^nd Feb. = Rs. 300

Balance on 5^th March = Rs. 300 + Rs. 1,500 = Rs. 1,800

Balance on 12^th April = Rs. 1,800 – Rs. 500 = Rs. 1,300

(i) Minimum balance for the month of Feb. = Nil since he opens the account after 10^th of the month.

(ii) Minimum balance for the month of March = Rs. 1,800

(iii) Minimum balance for the month of April = Rs. 1,300

(iv) Minimum balance for the month of May = Rs. 1,300