Question

Mrs. Geeta deposited Rs 350 per month in a bank for I year and 3 months under the Recurring Deposit Scheme. If the maturity value of her deposits is Rs 5,565; find the rate of interrest per annum.

Answer 1

P = Rs. 350,

no of months = 15,

rate = r %

Maturity Value = 5565

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

$5565=350\times 15+350\times \frac{15(15+1)}{2\times 12}\times \frac{r}{100}$

$r=\frac{(5565-350\times 15)\times (2\times 12)\times 100}{350\times 15\times 16}=9\%$