Question

Rakesh has a cumulative deposit account and deposits Rs. 900 per month for a period of 2 years. If he gets Rs. 23850 at the time of maturity. Find the rate of interest.

• A. 6%
• B. 8%
• C. 10%
• D. 12%

Answer 1

The correct option is C

10%

Given P = Rs. 900
n = 2 $\times$ 12 = 24 month
Maturity amount = 23850
Amount deposited = P $\times n=900\times 24=21600$
Interest = $\frac{P\left(n\right)(n+1)}{2\times 12}\times \frac{r}{100}$
= $\frac{900\times 24\times 25}{2\times 12}\times \frac{r}{100}=225r$
Since maturity amount = Amount deposited + Interest
23850 = 21600 +225r
225r = 2250
r= 10 %