Question

Ms. Mala deposited Rs. 1500 per month in a Recurring Deposite Scheme of a bank for 9 months. If she get Rs. 675 as interest at the time of maturity, find the rate of interest, if the interest is calculated at the end of each month. Find also the maturity value of the deposits.

Answer 1

Given that
Ms Mala deposited Rs 1500 per month ins a recuring deposit scheme of a bank for 9 months.
She gets Rs. 675 at the time of maturity.
Let the rate of interest be r% . Then,
Interest = Monthly installment $\times \frac{n(n+1)}{2}\times \frac{1}{12}\times \frac{r}{100}\Rightarrow 675=1500\times \frac{9\times 10}{2}\times \frac{1}{12}\times \frac{r}{100}\Rightarrow lr=675\times \frac{1}{1500}\times \frac{2}{9\times 10}\times 12\times 100\Rightarrow lr=12\%p.a$
Maturity value of Deposits $=1500\times 9+675\Rightarrow Rs.14175$