Question

If the interest is calculated at $6\%$ p.a. and is compounded at the end of March and September every year, The interest earned up to ${31}^{st}$ March and then after completing all the entries, find the amount that the account holder would have received had he closed the account on ${20}^{th}$ Oct. the same year. A page from the passbook of a Saving Book account in a particular year is given below:

Date	Particulars	Debit (Rs.)	Credit (Rs.)	Balance (Rs.)
Jan. $13$	By Cash		$5,000.00$	$5,000.00$
Feb. $13$	To self	$500.00$
March $24$	By Cheque		$2,000.00$
March $31$	By Interest
May $20$	By Cash		$800.00$
July $7$	To Cheque	$1,400.00$
July $18$	By Cash		$1,600.00$
Sept. $15$	To Cheque	$3,200.00$
Sept. $26$	By Cheque		$2,350.00$

• A. Rs. $4517.86$
• B. Rs. $3890.1$
• C. Rs. $4329.39$
• D. Rs. $6898.10$

Answer 1

The correct option is D Rs. $6898.10$

In bank gives interest on minimum balance between 10 Th to last date of month in S.B A\c

Date Particulars Debit(Rs) Credit (Rs) Balance (Rs )

Jan 13 By cash 5000.00 5000.00

Feb 13 To self 500.00 4500.00

March 24 By cheque 2000.00 6500.00

March 31 By interest 45.00 6545.00

May 20 By cash 800.00 7345.00

July 7 To cheque 1400.00 5945.00

July 18 BY cash 1600.00 7545.00

Sept 15 To cheque 3200.00 4345.00

Sept 16 By cheque 2350.00 6695.00

Sept 30 By interest 203.10 6898.10

Oct 20 To A\C closed 6898.10 NIL

Then product for the month Feb and March=$4500\times 2=Rs9000$

Then interest =$\frac{9000\times 6}{12\times 100}=45$ Rs

Then product for month April and May=$6545\times 2=Rs13090$

Or product for the month June=Rs 7345

Product for the month July =Rs 5945

Product for the month August =Rs 7545

product for the month Sept=Rs 6695

Then total product up to month Sept=13090+7345+5945+7545+6695=40620 Rs

Then interest up to Sept =$\frac{40620\times 6}{12\times 100}=203.10$Rs

The a|c closed on 20 Th Oct Then no interest paid for the month Oct

Then amount paid Rs. 6898.10.