Question

Shivangi deposits $Rs500$ every month in a recurring deposit scheme and receives $Rs16,550$ at the end of $2\frac{1}{2}$ years. Calculate the rate of interest given by the bank. If the interest can be represented as M/N simplest ratio then report N.

Answer 1

Let Shivangi deposit $Rs500$ for one month.

Therefore, for $2\frac{1}{2}=30\times 500=15000$

Hence total amount given by shivangi $Rs15000$

total amount given back to Shivangi $=Rs16,550$

Total extra money $16,550-15000=Rs1,550$

$Rs1,550$ is $9.36\%$ of $Rs16,550$

Rate of interest given by bank to Shivangi is $9.36\%$

Which can be written as $\frac{290}{31}$

Now $\frac{M}{N}=\frac{290}{31}$

$N=31$