Question

Ashit has Recurring Deposits Account. He deposits $₹950.00$ per month for a period of $24$months. At that time of maturity, he gets an interest of $₹2256.25$. Find the rate of interest.

Answer 1

Step 1: Given Data

The amount of money deposited per month, $P=₹950$,

The number of months, $n=24$ months,

At the time of maturity, the amount of interest got is, $I=₹2256.25$

The rate of interest is given by, $r=\frac{2400\times I}{Pn\left(n+1\right)}$

Step 2: Calculate the rate of interest

Therefore, the rate of interest of this account is,

$$\begin{gathered} \frac{2400\times 2256.25}{\left(950\times 24\right)(24+1)} \\ =\frac{5415000}{570000} \\ =9.5\% \end{gathered}$$

Final answer: The rate of interest is 9.5% of the given account.