Question

Mr. Gupta opened a recurring deposit account in a bank. He deposited Rs 2,500 per month for two years. At the time of maturity he got Rs 67,500. Find:

(i) the total interest earned by Mr. Gupta

(ii) the rate of interest per annum.

Answer 1

$P=Rs.2500,noofmonths=24,rate=r\%MaturityAmount=Rs.67500$

$MaturityValue=P\times n+P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$

$67500=2500\times 24+2500\times \frac{24(24+1)}{2\times 12}\times \frac{r}{100}$

$r=\frac{(67500-2500\times 24)\times (2\times 12)\times 100}{2500\times 24\times 25}$

$\Rightarrow r=12\%$

$Interest=2500\times \frac{24(24+1)}{2\times 12}\times \frac{12}{100}=Rs.7500$