Question

Ms Jain opened a recurring deposit account in a bank and deposits ₹300 per month for fifteen months. If she received ₹ 4740 at the time of maturity find: i) The total interest earned. ii) Rate of interest % p.a.

Answer 1

Step-by-step explanation:

Given Ms Jain opened a recurring deposit account in a bank and deposits ₹300 per month for fifteen months. If she received ₹ 4740 at the time of maturity find: i) The total interest earned. ii) Rate of interest % p.a.

• Deposit per month P = Rs 300
• Period = 15 months
• Maturity value = Rs 4740
• Now principal for 1 month will be
•                P x n (n + 1) / 2
•              300 x 15(15 + 1) / 2
•              300 x 15 x 16 / 2
•                = Rs 36,000
• Therefore interest earned = PRT / 100
•                                        = 36000 x R x 1 / 100 x 12
•                                        = 30 R
• Now 300 x 15 + 30 R
•           4500 + 30 R = 4740
•                 30 R = 4740 – 4500
•                   30 R = 240
•                       R = 240 / 30
•                       R = 8%
• So interest earned will be 30 x 8 = Rs 240
• Therefore rate of interest = 8% p.a.

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