Question

Asin has a recurring deposit account in a bank. He deposits ₹ 1500 per month for 2 years. If he gets ₹ 41,250 at the time of maturity. find :

i) the interest paid by the bank

ii) the rate of interest

• A. i) ₹ 5520 ii) 5 %
• B. i) ₹ 5250 ii) 6 %
• C. i) ₹ 5220 ii) 6.5 %
• D. i) ₹ 6220 ii) 4.5 %

Answer 1

The correct option is B

i) ₹ 5250 ii) 6 %

Given that amount invested per month (P) = ₹ 1500
Number of months (n) = 2 x 12 = 24 months
Let the Rate of Interest be (r) %

Total amount invested = P x n
= 1500 x 24
= ₹ 36,000
i) Interest = Maturity amount - Total amount invested
= ₹ 41,250 -36,000
= ₹ 5250

Interest = P $\times$ $\frac{n\times (n+1)}{2\times 12}$ $\times$ $\frac{r}{100}$
5250 = 3500 $\times$ $\frac{24\times (24+1)}{2\times 12}$ $\times$ $\frac{r}{100}$
= ₹ 875r

r = 6 %