Question

Shahrukh opened a Recurring Deposit Account in a bank and deposited Rs 800 per month for $1\frac{1}{2}$ years. If he received Rs 15,084 at the time of maturity, find the rate of interest per annum.

Answer 1

Given : Monthly deposit $P=800$

$\text{n}=\frac{3}{2}\times 12\text{months =18~ months}$

Maturity value = Rs.15084

Now,

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

$15084=800\times 18+800\times \frac{18(18+1)}{2\times 12}\times \frac{r}{100}$

$15084=14400+114r$

$114r=684$

$r=\frac{684}{114}=6\%$

Hence, the rate of interest per annum is 6%.