Question

Amit deposits rupees 2000 per month in a bank for 2 years in a recurring deposit account. if he gets ₹52,500 at the time of maturity, what is rate of interest per annum.​

Answer 1

Given:

deposit = 2000 per month

time T = 2 years

final amount = ₹52,500

To find:

R =?

Step-by-step explanation:

Amit deposits rupees 2000 per month in a bank.

Total principle amount = 2000 × 12

                                   P = 24000₹

Now, we have to find the amount of simple interest.

∴  Simple interest = final amount - principle amount

                           S = 52000 - 24000

                           S = 28000₹

But we also know that

        $\displaystyle S = \frac{P \times R \times N}{100}$

28000 = $\displaystyle \frac{24000\times R\times2}{100}$

⇒      R = 58.33% per year

Now∴ the rate of interest per annum is calculated as

R'  = $\frac{R}{12}$

    = $\displaystyle\frac{58.33}{12}$

R' = 4.86 %

∴ The rate of interest per annum is 4.86.