Tag: banking

Questions Related to banking

Which type of bank account is operated by businessman?

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. fixed deposit

  2. save deposit

  3. recurring deposit

  4. current deposit

Show answer
Correct Option: D
Explanation:

Current deposit type of bank account is operated by businessman.

Current accounts are basically meant for businessman and are never used for the purpose of investments or savings.

Lump sum amount is deposited at one time for a specific period is called

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. fixed deposit

  2. save deposit

  3. recurring deposit

  4. current deposit

Show answer
Correct Option: A
Explanation:

Lump sum amount is deposited at one time for a specific period is called fixed deposit.

In which account interest is calculated half yearly on the minimum balance between $11^{th}$ and the last day of the month?

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. fixed deposit

  2. recurring deposit

  3. saving deposit

  4. current deposit

Show answer
Correct Option: C
Explanation:

In saving deposit account interest is calculated half yearly on the minimum balance between $11^{th}$ and the last day of the month.

You have Rs. 1500 in your savings account at the beginning of the month.the record below shows all of your transactions during the month.How much money is in your account after these transactions?

Date Withdrawal Deposit
4/9/14 Rs 1200 Rs 2000
22/9/14 Rs. 2100 Rs.2500
banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. $Rs.\ 2000$

  2. $Rs.\ 3100$

  3. $Rs.\ 2500$

  4. $Rs.\ 2700$

Show answer
Correct Option: D
Explanation:

We have, Amount of money in savings account at the beginning of the month =Rs.1500
Total amount of money withdrawal Rs 1200+2100=Rs.3300
Total amount of money deposited =Rs(2000+2500)=Rs.4500
So, total amount of money after transactions=Rs (1500-3300+4500)=Rs.2700 

The rates of simple interest in two banks A and B are in the ratio 5 : 4. A person wants to deposit his total savings in two tanks in such a way that he received equal half yearly interest form both. He should deposit the savings in banks A and B in the ratio of

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. 2 : 5

  2. 4 : 5

  3. 5 : 2

  4. 5 : 4

Show answer
Correct Option: B
Explanation:

We know that $ SI = \dfrac {PNR}{100} $
We clearly see that when Simple Interest and the time $ N $ is constant or same, then Principal $ P $ varies inversely with $ R $
So, if $ R $ is in the ratio $ 5:4 $ then $ P $ deposited should be in the inverse $ 4: 5 $

John had a Savings Bank Account in a bank. In the months of April, $'97$ and May, $'97$ he had the following entries in his passbook.
Find the amounts on which John will get interest for the months of April, $2011$ and May, $2011$. 

Date Particular Withdrawals (In Rs.) Deposits (In Rs.) Balance (In Rs.)
April $1$ By Balance $4,600.00$
April $7$ By Cash $1,200.00$ $5,800.00$
April $24$ To Cheque $800.00$ $5,000.00$
May $16$ By Cheque $2,000.00$ $7,000.00$
May $29$ To Cash $1,500.00$ $5,500.00$



banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. Rs. $5000$, Rs. $5500$

  2. Rs. $5000$, Rs. $2500$

  3. Rs. $2500$, Rs. $5000$

  4. Rs. $2500$, Rs.$ 2500$

Show answer
Correct Option: A
Explanation:

According to the entries in the passbook:

The minimum balance after $10^{th}$ April $2011$ and up to last of April $2011$ is Rs.$5000$.
$\therefore $ the amount on which John will earn interest for the month of April $2011=$ Rs.$5000$.
Similarly the minimum balance after $10^{th}$ May $2011$ and up to last of May $2011$ is Rs.$5500$
$\therefore $ the amount on which John will earn interest for the month of May $2011=$ Rs.$5500$.

Mrs. Kapoor opened a bank account on 01/01/2010 with Rs. 24,000. If the bank pays 10% per annum and she deposited Rs. 4,000 at the end of each year, find the amount in her account on 01/01/2012.

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. 0

  2. Rs. 37,440

  3. Rs. 20,440

  4. Rs. 17,440

Show answer
Correct Option: B
Explanation:

Principal for the year 2010=Rs.24,000

Rate of interest=10%
$\therefore Interest=\frac{24000\times 1\times 10}{100}=Rs.2400$
Then the amount on Dec 2010=$Rs.24000+2400=Rs.26400$
At the end of the year Mrs.Kapoor deposited Rs.4000
$\therefore$ Amount at the end of the 2010$=26400+4000=Rs.30400$

Principal for the year 2011=Rs.30400
$\therefore interest=\frac{30400\times 1\times 10}{100}=Rs.3040$

Then the amount on Dec 2011=$Rs.30400+3040=Rs.33440$
At the end of the year Mrs.Kapoor deposited Rs.4000
$\therefore$ Amount at the end of the 2011$=33440+4000=Rs.37440$

$\therefore $Amount in her account on 01\01\2012=Rs.37440




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.
The entries in a Saving Bank Passbook are as given below:

Date Particulars Withdrawals(In Rs.) Deposits(In Rs.) Balance(In Rs.)
$01.01.03$ B/F $14,000.00$
$01.02.03$ By Cash $11,500.00$ $25,500.00$
$12.02.03$ To Cheque $5,000$ $20,500.00$
$05.04.03$ By Cash $3,7500.00$ $24,500.00$
$15.04.03$ To Cheque $4,250.00$ $20,000.00$
$09.05.03$ By Cash $1,500$ $21,500.00$
$04.06.03$ By Cash $1,500$ $23,000.00$
banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. Rs. $2390$

  2. Rs. $2373$

  3. Rs. $2431.2$

  4. Rs. $2416.8$

Show answer
Correct Option: A
Explanation:

According to the passbook:

Principal for the month of January $=$ Rs.$14000.00$
Principal for the month of February $=$ Rs.$20,500.00$
Principal for the month of March $=$ Rs.$20500.00$
Principal for the month of April $=$ Rs.$20000.00$
Principal for the month of May $=$ Rs.$21500.00$
Principal for the month of June $=$ Rs.$23000.00$
Total Principal $=14000+20500+20500+20,000+21500+23000=$ Rs.$119500$
Rate of interest $=4\%$
Time $=6$ month $=$ $\dfrac{1}{2}$ years
$\therefore$ interest $=\dfrac{PRT}{100}$
$\Rightarrow \dfrac{119500\times 4\times 1}{2\times 100}$ $=$ Rs.$2390$

In your saving bank account Rs. $1200$ for $3$ days at $2\%$ per annum is deposited. Calculate the interest.

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. $0.197$

  2. $1.197$

  3. $2.197$

  4. $3.197$

Show answer
Correct Option: A
Explanation:

Using the formula,
Saving account interest $=$ Principal or amount in the account $\times$ Number of days $\times$ Daily Interest Rate
At $2\% $daily interest rate $=$ $\dfrac{2%}{365}$
$=$ $\dfrac{1200\times3\times2}{100\times365}$
$= 0.197$

In your saving bank account Rs. $100,000$ for $2$ days at $2\%$ per annum is deposited. Calculate the interest.

banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account banking and taxation banking maths

  1. $9.95$

  2. $10.95$

  3. $11.95$

  4. $12.95$

Show answer
Correct Option: B
Explanation:

Using the formula,
Saving account interest $=$ Principal or amount in the account $\times$ Number of days $\times$ Daily Interest Rate
At $2\%$ daily interest rate $=$ $\dfrac{2%}{365}$
$=$ $\dfrac{100,000\times2\times2}{100\times365}$
$= 10.95$