### Calculation of Funds

###### INTEREST=PRINCIPALXTIME X RATE OF INTEREST/100

Principal means total progressive balance of progressive Balance of each month for the last 12 months.

Rate of Interest is applicable under rules for the financial year i.e. for the year 2004-05.

Rate of Interest = 8% and time = number of months of progressive balance/12 (or number of years)

Formula applicable as model examples for calculation of Interest.

Suppose Closing balance as on 31st March 2005 in respect of subscriber 'A' is Rs. 48,000/- and monthly subscription = Rs. 2000/-P.M. Monthly rate of advance is Rs. 1000/- P.M.

Rate of Interest on GPF for the year 2005-2006 = 8%

Closing Balance as on 31 st March 2005 is Rs.48000/-

 Month Subscription Refund Advance/ Withdrawal Rs. Progressive Balance April 2005 2000 1000 51,000 May 2005 2000 1000 54,000 June 2005 2000 1000 57,000 July 2005 2000 1000 60,000 August 2005 2000 1000 63,000 September 2005 2000 1000 66,000 October 2005 2000 1000 NIL 69,000 November 2005 2000 1000 72,000 December 2005 2000 1000 75,000 January 2006 2000 1000 78,000 February 2006 2000 1000 81,000 March 2006 2000 1000 84,000 Total 8,10,000

Interest as on 1 st April 2006 = 8,10,000/- X 1/12 X 8/100 = Rs. 5400/-

Total Progressive Balance at the end of the year.

(B) Example ‘B’ for part of a year:-
Closing Balance as on 31 st March 2003 is Rs.52000/-

 Month 2004 Subscription Refund Advance/ Withdrawal Rs. Progressive Balance April 2000 500 54,500 May 2000 500 57,000 June 2000 500 6000 53,500 July 2000 500 56,000 August 2000 1000 59,000 September 2000 1000 62,000 October 62,000 November 62,000 Total 4,66,000

Interest 4,66,000 X 1/12 X 8/100 = Rs. 3,106.67
Rounded off to Rs. 3,107/-

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