A person deposits Rs. 2,00,000, Rs. 4,00,000, Rs. 6,00,000 and Rs. 8,00,000 in his Deposit account at the beginning of 1st , 2nd , 3rd and 4th year respectively. Determine his account balance at the end of 4th year if interest rate is 12% p.a.
Answers
Answer:
Explanation:
Position of Deposit account will be as under:-
Deposit A/c
1st year
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To Bank 200,000.00
To Interest 24,000.00 By balance c/d 2,24,000.00
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total 2,24,000.00 2,24,000.00
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2nd year
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To Balance b/d 224,000.00
To Interest 26,880.00 By balance c/d 2,50,880.00
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total 2,50,8800.00 2,50,880.00
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3rd year
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To Balance b/d 2,50880.00
To Interest 30,106.00 By balance c/d 2,80,986.00
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total 2,80,986.00 2,80,986.00
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4th Year
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To Balance b/d 2,80986.00
To Interest 33,718.00 By balance c/d 3,14,704.00
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total 3,14,704.00 3,14,704.00
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Note:-
Interest is reinvested in deposit
Rounded off to nearest Rs.