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Question

(i) Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits Rs 140 per month for 4 years. If he gets Rs 8,092 on maturity, find the rate of interest given by the bank.

(ii) David opened a Recurring Deposit Account in a bank and deposited Rs 300 per month for two years. If he received Rs 7,725 at the time of maturity, find the rate of interest per annum.

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Solution

(i) P = Rs. 140,

no of months = 48,

Maturity Value = Rs.8092

rate = r %

MaturityValue=P×n+P×n(n+1)2×12×r100

8092=140×48+140×48(48+1)2×12×r100

r=(8092140×48)×(2×12)×100140×48×49

r=10%


(ii) P = Rs. 300,

no of months = 24,

Maturity Value = Rs.7725

rate = r %

MaturityValue=P×n+P×n(n+1)2×12×r100

7725=300×24+300×24(24+1)2×12×r100

r=(7725300×24)×(2×12)×100300×24×25

r=7%


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