Question

Sharukh opened a Recurring Deposit Account in a bank and deposited Rs 800 per month for $1\frac{1}{2}$ years. If he received Rs15,084 at the time of maturity, find the rate of interest per annum.
[4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

As Sharukh deposits Rs 800 per month for a period of $1\frac{1}{2}$ years.
Total money deposited $=800\times 18=Rs14400$
Equivalent principal $=800\times \frac{18(18+1)}{2}$
$800\times 9\times 19=Rs136800$
Let the rate of interest be r % p.a.
I = $P\times \frac{r}{100}\times \frac{1}{12}$
$=136800\times \frac{r}{100}\times \frac{1}{12}=Rs114r$
The amount of maturity = Rs (14400 + 114r)

$\Rightarrow 14400+114r=15084$
$\Rightarrow 114r=684\Rightarrow r=6$
Hence, rate of interest $=6\%$ p.a.