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

Edward opened a Recurring deposit account in a bank. He deposited Rs 300 per month for 2 years. At the time of maturity he received Rs 7725. What was the rate of interest?


A

7%

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B

7.5%

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

8%

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

9.5%

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A

7%


Equivalent principle for one month = Rs 300 × 24(24+1)2

= Rs 300 × 12 × 25 = Rs 90000

Interest on Rs 90000 for 1 month = Rs 90000 × 112 × r100 = Rs 75r

Total amount deposited in 24 months = Rs 24 × 300 = Rs 7200

Amount of maturity = Rs (7200 + 75r)

Or 7725 = 7200 + 75r

7725 – 7220 = 75r or r = 52575 = 7

Hence the rate of interest = 7% p.a.


flag
Suggest Corrections
thumbs-up
1
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Calculating Interest on Savings
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon