Question

Mr. Rakesh deposited ₹1,100 every month in a recurring deposit account of a bank for 4 years. If the bank pays interest at the rate of 9% per annum, find the interest earned by him on this account.

Answer 1

Given
$\text{Amount invested per month, P = ₹1,100}$

$\text{Number of months,}n=4\times 12=48\text{months}$

$\text{Rate of interest, r = 9\% per annum}$

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

$=1100\times \frac{48\times (48+1)}{2\times 12}\times \frac{9}{100}=₹9,702$