Question

The above figure shows a part of Avinash's Bank Passbook.
If the interest provided by the bank is at the rate of 10% p.a, find the closing balance on 23.05.2020.

• A. ₹ 26,400
• B. ₹ 20,400
• C. ₹ 26,000
• D. ₹ 22,500

Answer 1

The correct option is A ₹ 26,400

Given, the closing balance on 23.05.2019 is ₹ 24,000.

Also, 23.05.2020 appears one year after 23.05.2019.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, the interest earned = $\frac{₹24,000\times 10\times 1}{100}=₹2,400$

We know that,
Principal + Interest = Amount.
Hence, Amount = ₹ (24,000+2,400) = ₹ 26,400.

Hence, the closing balance on 23.05.2020 = ₹ 26,400.