Question

Manu has 5 years recurring deposit scheme and deposits Rs.240 per month. If he receives Rs.17694 at the time maturity, find the rate of interest.

Answer 1

Answer:

Rate of interest (R) = 9%

Explanation:

Manu has 5 years recurring deposit scheme and deposits Rs.240 per month. If he receives Rs.17694 at the time maturity,

Maturity Value = Rs17694

number of times interest paid (n) = 12 × 5 = 60

Principal (P) = Rs 240

Let the rate of interest= R%

$Maturity\: value = \left( 1+\frac{(n+1)R)}{2400}\right)\times nP$

$\implies 17694 = \left( 1+\frac{(60+1)R)}{2400}\right)\times 60\times240$
$\implies \frac{17694}{60\times240}=1+\frac{61R}{2400}[\tex]\\ [tex]\implies 1.22875=1+\frac{61R}{2400}$\\
$\implies 1.22875-1=\frac{61R}{2400}$
$\frac{0.22875\times2400}{61}=R$
$\implies \frac{549}{61}=R$
$\implies 9 = R$
Therefore,
R = 9%

••••