NumericalHard4 marks
A page from the savings bank account of Mrs. Ravi is given below. She closed the account on 30th September, 2006. Calculate the interest Mrs. Ravi earned at the end of 30th September, 2006 at 4.5% per annum interest. Hence, find the amount she receives on closing the account.
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
Thus, Mrs. Ravi receives ₹6051.50 on closing the account.
Explanation
Since the interest is earned on the minimum balance between 10th day and the last day of the month as per entries, we have Minimum balance for April = ₹8300 Minimum balance for May = ₹7600 Minimum balance for June = ₹10300 Minimum balance for July = ₹10300 Minimum balance for August = ₹3900 Minimum balance for September = ₹0 Total balance = ₹40400 ⇒ Total amount qualifying for interest = ₹40400 Principlefor1month year =₹40400, Rateof interest =4.5% per annum 40400×4.5× Interest =₹=₹151.50 Amount =Balancein theaccount in last month+Interest =5900+151.5 = ∈ ⇒
⇒ ₹6051.50 Thus, Mrs. Ravi receives ₹6051.50 on closing the account.
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