Question

1
Poonam Seth has an R. D. Account with the Union Bank. She deposits 240 every month
for 5 years. If she receives 17694 on maturity, find the rate of interest. [3]​

Answer 1

Given:

Amount deposited = Rs. 240

Amount received = Rs. 17,694

Time = 5 years = 60 months

To Find:

Rate of Interest

Solution:

n = 60, P = 240, Let rate be = r.

Thus,

Maturity Value = P x n( n + 1)/ 2 x 12 x r/100 + P x n

= 17694 = 240 X 60 X 61/24 X r/100 + ( 240 X 60)

= 17694 = 240 X 60 X 61/24 X r/100 + 14400

= 17694 = 14400 + 366r

366r = 17694 - 14400

366r = 3294

r = 3294/366

r = 9

Answer: The rate of interest is 9%.