A person deposit ₹50 at the beginning of every month. In savings account in which interest is allowed 2% per annum on minimum monthly balance? Find the balance of account at the end of the second year calculating I.

To calculate the balance at the end of the second year for this savings account, we need to break down the problem as follows:

### Given:
1. **Deposit**: ₹50 at the beginning of every month.
2. **Interest rate**: 2% per annum.
3. **Interest on minimum balance**: Interest is applied monthly on the minimum balance.
4. **Time period**: 2 years.

We'll follow these steps:

### Step 1: Monthly interest rate
- The annual interest rate is 2%, so the monthly interest rate is:
  \[
  \text{Monthly interest rate} = \frac{2\%}{12} = \frac{2}{100 \times 12} = 0.0016667
  \]

### Step 2: Monthly deposits and interest calculation
Each month, a new ₹50 deposit is made. The minimum balance on which interest is calculated for a month is the balance at the start of the month (before the deposit).

### Step 3: Accumulate balance month by month
We will calculate the balance at the end of each month by:
- Adding ₹50 as a new deposit.
- Applying interest to the minimum balance (which is the balance from the previous month).

Let me calculate the final balance at the end of the second year using this method.The balance at the end of the second year, after making ₹50 deposits every month and earning 2% annual interest on the minimum monthly balance, is approximately ₹1223.28.

### Breakdown of the first few months:
- After 1 month: ₹50.00
- After 2 months: ₹100.08
- After 3 months: ₹150.25
- After 6 months: ₹301.25
- After 12 months (1 year): ₹605.53
- After 24 months (2 years): ₹1223.28

### Conclusion:
The total balance after 24 months is ₹1223.28.

Would you like further details on the month-by-month breakdown or have any specific questions?

### 5 Related Questions:
1. How does compound interest differ when applied monthly versus annually?
2. How would the final balance change if the interest rate increased to 5% per annum?
3. What would the balance be if the deposits were made at the end of each month instead of the beginning?
4. How can we calculate the future value of regular deposits over different periods of time?
5. What is the effect of increasing the deposit amount to ₹100 monthly?

### Tip:
To maximize savings, try to deposit early in the month to benefit from a higher balance accruing interest.

A person deposits ₹50 at the beginning of every month in a savings account in which interest is allowed 2% per annum on minimum monthly balance. Find the balance of the account at the end of the second year, calculating interest.

Learn how to calculate the balance of a savings account after depositing ₹50 at the beginning of each month for 2 years, with an interest rate of 2% per annum on the minimum monthly balance. Detailed breakdown of monthly interest and deposits included. Suitable for students in Grades 9-12.

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