Question

Mr Jacob has 2-year recurring deposit account in Bank of Baroda and deposits rs 950 per month. If he receives rs 25056.25 at the time of maturity find (i) the rate of simple interest (ii) the total interest earned by Mr.Jacob.

Answer 1

Answer:

PRT/100

P=950

R=25056.25

T=2

950×25056.25×2/100

=476068.75

Answer 2

Given:-

principal (P)= Rs. 950

time= 2 years

(n)= 2x12= 24months

let rate be= r%

Explanation:-

Amount received at maturity = Total money deposited + Simple Interest

25056.25 = (P × n) + [{P ×  n(n+1)} / (2 × 12)] × r/100

25056.25 = (950 × 24) + [{950 × 24 × 25} / 24] × r/100

25056.25 = 22800+(570000 / 24) × r/100

25056.25 - 22800 = 23750 ×  r/100

(2256.25 x 100)/23750 = r

9.5 = r

rate of simple interest is 9.5

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Hope It Helps You ! :D

By Abhiram5566