Question

Calculate the interest for six months (January to June) at $4\%$ per annum on the minimum balance on or after the tenth day of each month.

The entries in a Saving Bank Passbook are as given below:

Date	Particulars	Withdrawals (In Rs.)	Deposits (In Rs.)	Balance (In Rs.)
$\mathrm{01.01.03}$	B/F			$14,000.00$
$\mathrm{01.02.03}$	By Cash		$11,500.00$	$25,500.00$
$\mathrm{12.02.03}$	To Cheque	$5,000$		$20,500.00$
$\mathrm{05.04.03}$	By Cash		$3,7500.00$	$24,500.00$
$\mathrm{15.04.03}$	To Cheque	$4,250.00$		$20,000.00$
$\mathrm{09.05.03}$	By Cash		$1,500$	$21,500.00$
$\mathrm{04.06.03}$	By Cash		$1,500$	$23,000.00$

• A. Rs. $2390$
  
• B. Rs. $2373$
• C. Rs. $2431.2$
• D. Rs. $2416.8$

Answer 1

The correct option is A Rs. $2390$

According to the passbook:

Principal for the month of January $=$ Rs.$14000.00$

Principal for the month of February $=$ Rs.$20,500.00$

Principal for the month of March $=$ Rs.$20500.00$

Principal for the month of April $=$ Rs.$20000.00$

Principal for the month of May $=$ Rs.$21500.00$

Principal for the month of June $=$ Rs.$23000.00$

Total Principal $=14000+20500+20500+20,000+21500+23000=$ Rs.$119500$

Rate of interest $=4\%$

Time $=6$ month $=$ $\frac{1}{2}$ years

$\therefore$ interest $=\frac{PRT}{100}$

$\Rightarrow \frac{119500\times 4\times 1}{2\times 100}$ $=$ Rs.$2390$