Question

Mr. Sen has a savings bank account with a post office.

(i) calculate the interest earned by Mr. Sen during the year 2010 at 6.5% per annum payable in December if the entries during the year in his passbook are as given below:

Date	Particulars	Withdrawals  (Rs)	Deposits (Rs)
2.1.10	By cash		250.00
9.1.10	By Cheque		825.00
13.3.10	To Cash	325.00
24.7.10	By cash		1,237.00
6.10.10	To Cheque	250.00
22.12.10	By Cheque		958.00

(ii) Also, calculate the interest when the principal for every month is taken as the nearest multiple of Rs. 10.

Answer 1

(i) Minimum balance for Jan.= Rs. 1,075

Minimum balance for Feb. = Rs. 1,075

Minimum balance for Mar. = Rs. 750

Minimum balance for Apr. = Rs. 750

Minimum balance for May = Rs. 750

Minimum balance for June= Rs. 750

Minimum balance for July = Rs. 750

Minimum balance for Aug. = Rs. 1,987

Minimum balance for Sept. = Rs. 1,987

Minimum balance for Oct. = Rs. 1,737

Minimum balance for Nov. = Rs. 1,737

Minimum balance for Dec. = Rs. 1,737

Total principal = Rs. 15,085

(ii) Minimum balance for Jan.= Rs. 1,080

Minimum balance for Feb. = Rs. 1,080

Minimum balance for Mar. = Rs. 750

Minimum balance for Apr. = Rs. 750

Minimum balance for May = Rs. 750

Minimum balance for June= Rs. 750

Minimum balance for July = Rs. 750

Minimum balance for Aug. = Rs. 1,990

Minimum balance for Sept. = Rs. 1,990

Minimum balance for Oct. = Rs. 1,740

Minimum balance for Nov. = Rs. 1,740

Minimum balance for Dec. = Rs. 1,740

Total principal = Rs. 15,110