Question

Mr. Sharma opened a recurring deposit account in a bank. He deposited ₹1500 per month for two years. At the time of maturity he got ₹40500. Calculate the rate of interest per annum.

Answer 1

Let the rate of interest be r
P = ₹1500
n = 2 × 12 = 24
M.V(Maturity value) = ₹40500
Amount deposited = P × n
= ₹1500 × 24 = 36000

Interest = <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> $\frac{p\times n(n+1)}{2\times 12}\times \frac{r}{100}$

= $\frac{1500\times 24(24+1)}{2\times 12}\times \frac{r}{100}=375r$

Since maturity value = Amount deposited + interest

40500 = 36000 + 375r

375r = 40500 - 36000 = 4500

r = <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> $\frac{4500}{375}$ = 12

So, the rate of interest is 12%