Question

A man opened a savings bank account with a bank on 22nd Feb., 1998 and deposited Rs. 300. He further deposited Rs. 1,500 on 5th march 1998 and withdrew Rs. 500 on 12th April 1998. Assuming that he neither deposited not withdrew any money up to the last day of May 1998; write the amounts on which he would receive interest for:

(i) Feb., 1998

(ii) March, 98

(iii) April, 98

(iv) May, 98

Answer 1

Balance on 22nd Feb. = Rs. 300

Balance on 5th March = Rs. 300 + Rs. 1,500 = Rs. 1,800

Balance on 12th April = Rs. 1,800 – Rs. 500 = Rs. 1,300

(i) Minimum balance for the month of Feb. = Nil since he opens the account after 10th of the month.

(ii) Minimum balance for the month of March = Rs. 1,800

(iii) Minimum balance for the month of April = Rs. 1,300

(iv) Minimum balance for the month of May = Rs. 1,300