Question

Mr. Gupta opened a recurring deposit account in a
bank. He deposited 2500 per month for two years
At the time of maturity he got * 67,500.
Find : (i) the total interest earned by Mr. Gupta,
(ii) the rate of interest per annum.​

Answer 1

given that

Amount deposited by Mr. Gupta per month = ₹ 2500

Period (x) = 2 years = 24 months

Amount got at the time of maturity = ₹ 67500

We know that

Total principal for one month = 2500 × [x (x + 1)]/ 2

Substituting the value of x

= 2500 × (24 × 25)/ 2

By further calculation

= ₹ 750000

Interest = Maturity value – x × deposit per month

Substituting the values

= 67500 – 24 × 2500

= 67500 – 60000

= ₹ 7500

We know that

Period = 1 month = 1/12 year

So the rate of interest = (SI × 100)/ (P × T)

Substituting the values

= (7500 × 100 × 12)/ (750000 × 1)

= 12%