Question

Anuradha invests INR 500 every month in a recurring deposit scheme for 3 years . the interest earned is INR2220. find the rate of interest and the maturity value of the investment.

Answer 1

Principal investment $=500\times 3\times 12=18000/-$

$\text{Simple interest}=\frac{P\times r\times t}{100}$

$2220=\frac{18000\times r\times 3}{100}$

$r=4.11$%

Maturity value of interest $=\text{Principle +interest}=18000+2220=Rs.20220$