Question

Calculate the interest when the principal for every month is taken as the nearest multiple of Rs. 10.

• A. Rs. $73.56$
• B. Rs. $70.95$
• C. Rs. $62.48$
• D. Rs. $59.32$

Answer 1

The correct option is B Rs. $70.95$

$\Rightarrow$ Minimum balance for July $=Rs.690$

$\Rightarrow$ Minimum balance for August $=Rs.1,840$

$\Rightarrow$ Minimum balance for September $=Rs.2,370$

$\Rightarrow$ Minimum balance for October $=Rs.2,370$

$\Rightarrow$ Minimum balance for November $=Rs.2,370$

$\Rightarrow$ Minimum balance for December $=Rs.4,550$

$\Rightarrow$ Minimum balance for January $=Rs.0$

$\Rightarrow$ Total principal $=Rs.14,190$

$\Rightarrow$ Rate $=6\%$ p.a. and time = $\frac{1}{12}$year.

$\Rightarrow$ Interest = $\frac{P\times R\times T}{100}=\frac{14,190\times 6\times 1}{100\times 12}$

$\Rightarrow$ $Interest=Rs.70.95$