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.

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Solution

Given
$Amount invested per month, P = ₹1,100$

$Number of months, n = 4 \times 12 = 48 months$ [0.5 Marks]

$Rate of interest, r = 9% per annum$

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

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

$= ₹ 9, 702$ [0.5 Marks]

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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.

Given Amount invested per month, P = ₹1,100 Number of months, n=4×12=48 months [0.5 Marks] Rate of interest, r = 9% per annum Interest =P×n×(n+1)2×12×r100 [1 Mark] =1100×48×(48+1)2×12×9100 =₹9,702 [0.5 Marks]