Question

Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits Rs140 per month for 4 years. If he gets Rs 8,092 on maturity, find the rate of interest given by the bank.

• A. 12%
• B. 10.5%
• C. 10%
• D. 11%

Answer 1

The correct option is C 10%

Installment per month(P) = Rs140

Number of months(n) = 48

Let rate of interest(r)= r %p.a.
$S.I.=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$=140\times \frac{48(48+1)}{2\times 12}\times \frac{r}{100}$
$=140\times \frac{2352}{2\times 12}\times \frac{r}{100}=Rs\left(137.2\right)r$

Maturity value= Rs(140 x48)+Rs(137.20)r

Given maturity value= Rs8,092

Then Rs(140 x48)+Rs(137.20)r = Rs8,092

137.20r = Rs8,092 - Rs6,720

$\Rightarrow r=\frac{1,372}{137.20}=10$