Question

manisha has a recurring deposit account in state bank of india . she deposits rs 1200 per months for 2 years. if she get rs 31500 on maturity, find the rate of interest given by bank

Answer 1

Answer:

mv = ( principal amount × months ) + interest

31500 = (1200 × 24) + interest

31500 - 28800 = interest

interest = 2700

now ,

2700 = (1200 × 24 × 25 × R) ÷ 100 × 12 × 2

2700 = 25 × 12 × R

R = 2700 ÷ 300

R = 9 % p.a.