wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

David opened a Recurring Deposit Account in a bank and deposited Rs 300 per month for two years. If he received Rs 7725 at the time of maturity, find the rate of interest per annum.
[4 MARKS]

Open in App
Solution

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Amount deposited per month = Rs 300
No. of installments in 2 years = 24
Equivalent Principal=Rs 300(24×252)=Rs 90,000.
Maturity value = 24×300+90000×r×1100×12
7725=7200+75r
r=7725720072=52575=7%
Hence, the rate of interest is 7% p.a.

flag
Suggest Corrections
thumbs-up
3
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
When the Interest is Compounded Half-Yearly
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon