Question

Find the interest earned on a recurring deposit for 2 years at 12% pa, paying monthly deposit of Rs.800.

Answer 1

given, installment per month (P) = 800 Rs.

number of months (n) = 2 × 12 = 24

rate of interest , (r) = 12% per annum

use formula, S.I = P × {n(n + 1)/(2 × 12)} × r/100

= 800 × {24 × (24 + 1)/24 } × 12/100

= 800 × {24 × 25/24 } × 12/100

= 800 × 12/100 × 25

= 8 × 12 × 25

= 2400 Rs.


interest earned on recurring deposit for 2 years at 12 % pa = 2400 Rs.