Question

Arun has a recurring deposit account in a bank. He deposited 2500 per month for 2 years. If he gets ₹ 66250 at the time of maturity. Find the rate of interest will be equal to ___ %.

• A. 12%
• B. 10%
• C. 15%
• D. 9%

Answer 1

The correct option is B

10%

Total money deposited in the bank = $2\times 12\times 2500[\because 2years=2\times 12month]$
Maturity value of the deposit = ₹ 66250
Interest paid by bank = Maturity value - Sum deposited
Interest = ₹ 66250- ₹ 60,000 = ₹ 6250
Interest is given by
I = $\frac{P\times n(n+1)}{2\times 12}\times \frac{r}{100}$
6250= $\frac{2500\times 24(24+1)}{2\times 12}\times \frac{r}{100}$
r= $\frac{6250\times 24\times 100}{2500\times 24\times 25}=10$
r= 10%