Question

Gopal has a cumulative deposit account and deposits Rs.900 per month for a period of 4 years. If he gets Rs. 52020 at time of maturity, find the rate of interest. ​

Answer 1

Solution!!

The question is related to banking and maturity value. The principal, time and maturity value is given. We have to find the rate of interest.

Maturity value (MV) = Rs 52020

Principal (P) = Rs 900

Time (n) = 4 years = 48 months

Rate of interest (R) = ?

Let's find the rate of interest!

$\sf \boxed{\bold{MV=P\times n+P\times \dfrac{n(n+1)}{2\times 12}\times \dfrac{R}{100}}}$

$\sf \to 52020=900\times 48+900\times \dfrac{48\times 49}{2\times 12}\times \dfrac{R}{100}$

$\sf \to 52020=43200+900\times \dfrac{48\times 49}{2\times 12}\times \dfrac{R}{100}$

$\sf \to 52020-43200=9\times 2\times 49\times R$

$\sf \to 8820=882R$

$\sf \to \dfrac{8820}{882}=R$

$\sf \to R = 10$

Hence, the rate of interest is 10%.