A shopkeeper with an overdraft facility at 18 percent with a bank borrowed ` 15000 on Jan 8, 2011 and returned the money on June 3, 2011 so as to clear the debt. The amount that he paid was

D borrowed P20,000.00 from C. The debt, which bears interest at 10% per annum, is due after one year. On due date, D paid C P20,000.00 representing the principal, but by that time C had already become insane. Later, G, the guardian of C, demanded payment from D but D presented a receipt issued by C acknowledging the payment. Upon investigation, G discovered that P8,000.00 was still in C’s possession; P9,000.00 was spent by C for groceries as evidenced by the receipt of Esem Supermarket; and P3,000.00 was admitted by C to have been lost by him in a gambling game. G may demand payment from D in the amount of:1 pointP14,000.00, representing the interest, the gambling loss, and the cost of groceries.P22,000.00, the total debt because payment to an incapacitated creditor is not valid.P5,000.00, representing the interest and the gambling loss.P2,000.00, representing the interest.

A person takes a loan of Rs. 200 at 5% simple interest on the outstanding amount. He returns Rs. 100 at the end of one year. In order to clear his due at the end of 2 years, he would pay:

A company borrows money as needed on the first day of the month and repays principal and interest on the last day of the budget period, if cash is available.  For the third quarter of the year, they borrowed $5,000 in July, $7,000 in August and $4,000 in June.  The interest rate is 1% per month.  Assuming enough money is available on June 30th to repay the debt, the total amount of interest due is $

What do you understand by bank overdraft ?

When customer’s account overdrawn or when customer has taken loan from banker, then the customera.Creditorb.Bailorc.Debtord.Agen