Question

Mr Singh invest rupees 250 every month for 24 months in a bank and collects Rupees 6750 at the end of the term. Find the rate of simple interest paid by the bank on this recurring deposit.


✔ answer correctly​

Answer 1

Solution :

Mr singh earned interested of Rs. 750 after 24 months.

24 months = 2 years.

12 Months = 1 year

Therefore the simple interest for one year will be

$\frac{750}{2} = 375$

Therefore,

$\frac{375}{6000} \times 100 = 6.25\%$

Therefore, Mr singh recived interested 6.25% per annum.

Note that : Calculations are done in the attachment.

Additional information :

• The process for gaining profit is known as investment.
• The other word for investment is Principal
• A recurring deposit is a term offered by bank which helps us to keep our fixed amount every month. It also helps us to earn at interests in the form of rate applicable to fixed deposits.

Answer 2

Answer:

The answer is 6.25%

Step-by-step explanation: