Question 1:  Given the following details, calculate simple interest at the rate of 6% per annum up to June 30. [2003]

Date Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Jan 1 24000 24000
Jan 20 5000 19000
Jan 29 10000 29000
March 15 8000 37000
April 3 7653 44653
May 6 3040 41613
May 8 5087 46700

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
January 19000
February 29000
March 29000
April 44653
May 46700
June 46700
Total 215060

 P = Rs. \ 215060 R = 6\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 215060 \times \frac{6}{100} \times \frac{1}{12} = Rs. \  1075.27

\\

Question 2: Mr. Ashok has an account in the Central Bank of India. The following entries are from his passbook:-

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
01.01.05 B/F 1200
07.01.05 By Cash 500 1700
17.01.05 To Cheque 4000 1300
10..02.05 By Cash 800 2100
25.02.05 To Cheque 500 1600
20.09.05 By Cash 700 2300
21.11.05 To Cheque 600 1700
05.12.05 By Cash 300 2000

If Mr. Ashok gets Rs. 83.75 as interest at the end of the year, where the interest rate is compounded annually, calculate the rate of interest paid by the bank in his Savings Bank Account on 31st December 2005. [2006]

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
January 1300
February 1600
March 1600
April 1600
May 1600
June 1600
July 1600
August 1600
September 1600
October 2300
November 1700
December 2000
Total 20100

 P = Rs. \ 20100 Rate = r\% \ and \  T= \frac{1}{12} , \ Interest = Rs. \ 83.75

I = P \times R \times T

83.75= 20100 \times \frac{r}{100} \times \frac{1}{12} \Rightarrow r = 5 \%

\\

Question 3: Kiran deposited Rs. 200 per month for 36 months in a bank’s recurring deposit account. If the bank pays interest at the rate of 11% per annum, find the amount she gets on maturity. [2012]

Answer:

P = Rs. \ 200, \ no \ of \ months = 36, \ r = 11\%

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

 =200 \times 36 +200 \times \frac{36(36+1)}{2 \times 12} \times \frac{11}{100} = Rs. 8421

\\

Question 4: Mohan deposited Rs. 80 per month in a cumulative deposit account for 6 years. Find the amount payable to him on maturity, it the rate of interest is 6% per annum. [2006]

Answer:

P = Rs. \ 80, \ no \ of \ months = 72, \ r = 6\%

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

 =80 \times 72 +80 \times \frac{72(72+1)}{2 \times 12} \times \frac{6}{100} = Rs. 6811.20

\\

Question 5: Mr. R. K. Nair gets Rs. 6455 at the end of one year at the rate of 14% per annum in a recurring deposit account. Find the monthly installment. [2005]

Answer:

P = Rs. \ x, \ no \ of \ months = 12, \ rate = 14\%  \ Maturity Amount = Rs. 6455

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

6455 =x \times 12 +x \times \frac{12(12+1)}{2 \times 12} \times \frac{14}{100}  

x = \frac{6455}{12.91} = Rs. 500

He must deposit Rs. 500 every month.

\\

Question 6: Ahmed has a recurring deposit account in a bank He deposits Rs. 2500 per month for 2 years. If he gets Rs. 66250 at the time of maturity, find: i) interest paid by the bank ii) rate of interest. [2011]

Answer:

P = Rs. \ 2500, \ no \ of \ months = 24, \ rate = r\%  \ Maturity Amount = Rs. 66250

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

 66250 =2500 \times 24 +2500 \times \frac{24(24+1)}{2 \times 12} \times \frac{r}{100} \Rightarrow r=10\%

Interest = P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

 = 2500 \times \frac{24(24+1)}{2 \times 12} \times \frac{10}{100} = 6250

Question 7: The entries in a Saving Bank passbook are given below:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
01.01.03 B/F     14,00.00
01.02.03 By Cash   11,500.00 25,500.00
12.02.03 To Cheque 5,000   20,500.00
05.04.03 By Cash   3,750.00 24,250.00
15.04.03 To Cheque 4,250.00   20,000.00
09.05.03 By Cash   1,500.00 21,500.00
04.06.03 By Cash   1,500.00 23,000.00

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. [2004]

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
January 14000
February 20500
March 20500
April 20000
May 21500
June 23000

Total = Rs. 119500

P = Rs. \ 119500 R = 4\% \ and \ T= \frac{1}{12}

I = P \times R \times T = 119500 \times \frac{4}{100} \times \frac{1}{12} = Rs. \  398.33

\\

Question 8: A page from the passbook of Mrs. Rama Bhalla is given below:

Date Year 2004 Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
January 1 B/F     2,000.00
January 9 By Cash   200.00 2,200.00
February 10 To Cheque 500.00   1,700.00
February 24 By Cheque   300.00 2,000.00
July 29 To Cheque 200.00   1,800.00
November 7 By Cash   300.00 2,100.00
December 8 By Cash   200.00 2,300.00

Calculate the interest to Mrs. Rama Bhalla for the period of January 2004 to December 2004, at the rate of 5% per annum. [2005]

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
January 2200
February 1700
March 2000
April 2000
May 2000
June 2000
July 1800
August 1800
September 1800
October 1800
November 2100
December 2300
Total 23500

P = Rs. \ 23500 R = 5\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 23500 \times \frac{5}{100} \times \frac{1}{12} = Rs. \  97.92

\\

Question 9: A page from Saving Bank account of Mr. Prateek is given below:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
January 1st 2006 B/F 1,270
January 7th 2006 By Cheque 2,310 3,580
March 9th 2006 To Self 2,000 1,580
March 26th 2006 By Cash 6,200 7,780
June 10th 2006 To Cheque 4,500 3,280
July 15th 2006 By Clearing 2,630 5,910
October 18th 2006 To Cheque 530 5,380
October 27th 2006 To Self 2,690 2,690
November 3rd 2006 By Cash 1,500 4,190
December 6th 2006 To Cheque 950 3,240
December 23rd 2006 By Transfer 2,920 6,160

If he receives Rs.198 as interest on 1st January 2007. Find the rate of interest paid by the bank. [2012]

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
January 3580
February 3580
March 1580
April 7780
May 7780
June 3280
July 3280
August 5910
September 5910
October 2690
November 4190
December 3240
Total 52800

P = Rs. \ 52800 R = x\% \ and \  T= \frac{1}{12} I = Rs. \ 198

I = P \times R \times T \Rightarrow 52800 \times \frac{x}{100} \times \frac{1}{12} = 198 \Rightarrow x = 4.5 \%

\\

Question 10: Mrs. Kapoor opened a Saving Bank Account in State Bank of India on 9th January 2008. Her passbook entries for the year 2008 are given below:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Jan. 9, 2008 By Cash 10,000 10,000
Feb. 12, 2008 By Cash 15,500 25,500
April 6, 2008 To Cheque 3,500 22,000
April 30, 2008 To Self 2,000 20,000
July 16, 2008 By Cheque 6,500 26,500
Aug. 4, 2008 To Self 5,500 21,000
Aug. 20, 2008 To Cheque 1,200 19,800
Dec. 12, 2008 By Cash 1,700 21,500

Mrs. Kapoor closed the account on 31st December 2008. If the bank pays interest at 4% per annum, find the interest he receives on closing the account. Give your answer correct to the nearest rupee. [2010]

Answer:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Jan. 9, 2008 By Cash 10,000 10,000
Feb. 12, 2008 By Cash 15,500 25,500
April 6, 2008 To Cheque 3,500 22,000
April 30, 2008 To Self 2,000 20,000
July 16, 2008 By Cheque 6,500 26,500
Aug. 4, 2008 To Self 5,500 21,000
Aug. 20, 2008 To Cheque 1,200 19,800
Dec. 12, 2008 By Cash 1,700 21,500

Qualifying principal for various months: 

Month Principal (Rs.)
January 10000
February 10000
March 25500
April 20000
May 20000
June 20000
July 20000
August 19800
September 19800
October 19800
November 19800
Total 204700

P = Rs. \ 204700 R = 4.0\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 204700 \times \frac{4}{100} \times \frac{1}{12} = Rs. \  682.33 or Rs. 682

\\

Question 11: Explain the following:

i) Punnet has a recurring deposit account in Bank of Baroda and deposits Rs.140 per month for 4 years. If he gets Rs.8,092 on maturity, find the rate of interest given by the bank.

ii) David opened a recurring deposit account in a bank and deposited Rs.300 per month for two years. If he received Rs.7,725 at the time of maturity, find the rate of interest per annum. [2008]

Answer:

i)

P = Rs. \ 140, \ no \ of \ months = 48, \ rate = r\%  \ Maturity Amount = Rs. 8092

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

8092 =140 \times 48 +140 \times \frac{48(48+1)}{2 \times 12} \times \frac{r}{100}  

r = \frac{(8092-140 \times 48) \times (2 \times 12) \times 100}{140 \times 48 \times 49} \Rightarrow r=10\%

ii)

P = Rs. \ 300, \ no \ of \ months = 24, \ rate = r\%  \ Maturity Amount = Rs. 7725

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

7725 =300 \times 24 +300 \times \frac{24(24+1)}{2 \times 12} \times \frac{r}{100}  

r = \frac{(7725-300 \times 24) \times (2 \times 12) \times 100}{300 \times 24 \times 25} \Rightarrow r=7\%

\\

Question 12: Amit deposited 150 per month in a bank for 8 month under the recurring deposit scheme. What will be the maturity value of his deposits, if the rate of interest is 8% per annum and interest is calculated at the end of every month? [2001, 2007]

Answer:

P = Rs. \ 150, \ no \ of \ months = 8, \ r = 8\%

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

 =150 \times 8 +150 \times \frac{8(8+1)}{2 \times 12} \times \frac{8}{100} = Rs. 1236

\\

Question 13: Gupta opened a recurring deposit account in a bank. He deposited Rs. 2,500 per month for two years. At the time of maturity, he got Rs.67,500. Find:

  • The total interest earned by Mr. Gupta
  • The rate of interest per annum. [2010]

Answer:

P = Rs. \ 2500, \ no \ of \ months = 24, \ rate = r\%  \ Maturity Amount = Rs. 67500

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

67500 =2500 \times 24 +2500 \times \frac{24(24+1)}{2 \times 12} \times \frac{r}{100}  

r = \frac{(67500-2500 \times 24) \times (2 \times 12) \times 100}{2500 \times 24 \times 25} \Rightarrow r=12\%

Interest =2500 \times \frac{24(24+1)}{2 \times 12} \times \frac{12}{100} = Rs. \ 7500

\\

Question 14: Given below are the entries in a saving Bank A/C passbook:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Feb. 8 B/F 8,500
Feb. 18 To Self 4,000 4,500
April 12 By Cash 2,230 6,730
June 15 To Self 5,000 1,730
July 8 By Cash 6,000 7,730

Calculate the interest for six months from February to July at 6% p.a. [2013]

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
February 4500
March 4500
April 4500
May 6730
June 1730
July 7730
Total 29690

P = Rs. \ 29690 R = 6\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 29690 \times \frac{6}{100} \times \frac{1}{12} = Rs. \  148.45

\\

Question 15: Chaudhary opened a saving bank account at State Bank of India on 1st April 2007. The entries of one year as shown in his passbook are given below:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
1st April 2007 By Cash 8,550.00 8,550.00
12th April 2007 To Self 1,200.00 7,350.00
24th April 2007 By Cash 4,550.00 11,900.00
8th July 2007 By Cheque 1,500.00 13,400.00
10th Sept. 2007 By Cheque 3,500.00 16,900.00
17th Sept. 2007 To Cheque 2,500.00 14,400.00
11th Oct. 2007 By Cash 800.00 15,200.00
6th Jan. 2008 To Self 2,000.00 13,200.00
9th March 2008 By Cheque 950.00 14,150.00

If the bank pays interest at the rate of 5% per annum, find the interest paid on 1st April 2008. Give your answer correct to nearest rupee. [2011]

Answer:

Qualifying principal for various months: 

Month Principal (Rs.)
April 7350
May 11900
June 11900
July 13400
August 13400
September 14400
October 14400
November 15200
December 15200
January 13200
February 13200
March 14150
Total 157700

 P = Rs. \ 157700 R = 5\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 157700  \times \frac{5}{100} \times \frac{1}{12} = Rs. \  657.08 or Rs. \ 657

\\

Question 16: Bitto deposits a certain sum of money in a recurring deposit account of a Bank. If the rate of interest of 8% per annum and Mr. Bitto gets Rs.8,008 from the bank after 3 years, find the value of his monthly installment. [2013]

Answer:

P = Rs. \ x, \ no \ of \ months = 36, \ rate = 8\%  \ Maturity Amount = Rs. 8008

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

8008 =x \times 36 +x \times \frac{36(36+1)}{2 \times 12} \times \frac{8}{100}  

x = \frac{8008}{40.44} = Rs. 198.02

He must deposit Rs. 200 every month.

\\

Question 17: Shahrukh opened a recurring deposit account in a bank and deposited 800 per month for 1 ½ years. If he received Rs.15,084 at the time of maturity. Find the interest rate per annum. [2014]

Answer:

P = Rs. \ 800, \ no \ of \ months = 18, \ rate = r\%  \ Maturity Amount = Rs. 15084

Maturity \ Value = P \times n + P \times \frac{n(n+1)}{2 \times 12} \times \frac{r}{100}

15084 =800 \times 18 +800 \times \frac{18(18+1)}{2 \times 12} \times \frac{r}{100}  

r = \frac{(15084-800 \times 18) \times (2 \times 12) \times 100}{800 \times 18 \times 19} \Rightarrow r=6\%

\\

Question 18: A page from the saving account of Priyanka is given below:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
03/04/2006 B/F     4000.00
05/04/2006 By Cash   2000.00 6000.00
18/04/2006 By Cheque   6000.00 12000.00
25/05/2006 To Cheque 5000.00   7000.00
30/05/2006 By Cash   3000.00 10000.00
20/07/2006 By Self 4000.00   6000.00
10/09/2006 By Cash   2000.00 8000.00
19/09/2006 To Cheque 1000.00   7000.00

If the interest earned by Priyanka for the period ending September 2006 is Rs.175, find the rate of interest. [2014]

Answer:

Qualifying principal for various months: 

Month Principal (Rs.)
April 6000
May 7000
June 10000
July 6000
August 6000
September 7000
Total 42000

P = Rs. \ 42000 Rate = r\% \ and \  T= \frac{1}{12} , \ Interest = Rs. \ 175

I = P \times R \times T

175= 42000 \times \frac{r}{100} \times \frac{1}{12} \Rightarrow r = 5 \%

\\

Question 19: Mr. Dhoni has an account in the Union Bank of India. The following entries are from his passbook:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Jan 3, 07 B/F 2642.00
Jan 16, 07 To Self 640.00 2002.00
March 5, 07 By Cash 850.00 2852.00
April 10, 07 To Self 1130.00 1722.00
April 25, 07 By Check 650.00 2372.00
June 15, 07 By Cash 577.00 1795.00

Calculate the interest from January 2007 to June 2007 at the rate od 4% per annum. [2008]

Answer:

Qualifying principal for various months:

Month Principal (Rs.)
January 2002
February 2002
March 2852
April 1722
May 2372
June 1795
Total 12745

P = Rs. \ 12745 R = 4\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 12745 \times \frac{4}{100} \times \frac{1}{12} = Rs. \  42.48

\\

Question 20: Given below are the entries in a Saving Bank A/c passbook:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Feb 8 B/F 8500
Feb, 18 To Self 4000
April, 12 By Cash 2238
June, 15 To Self 5000
June, 8 By Cash 6000  

Calculate the interest for the six months, February to July, at 4.5% per annum on the minimum balance on or after the 10th day of each month. [2000, 2007]

Answer:

Date Particulars Withdrawals (Rs.) Deposits (Rs.) Balance (Rs.)
Feb 8 B/F 8500
Feb, 18 To Self 4000 4500
April, 12 By Cash 2238 6738
June, 15 To Self 5000 1738
June, 8 By Cash 6000 7738

Qualifying principal for various months:

Month Principal (Rs.)
February 4500
March 4500
April 4500
May 6738
June 1738
July 7738
Total 29714

 P = Rs. \ 29714 R = 4.5\% \ and \  T= \frac{1}{12}

I = P \times R \times T = 29714 \times \frac{4.5}{100} \times \frac{1}{12} = Rs. \  111.43

\\

Advertisements