Question 17. Aryan has a recurring deposit account in a bank. If he deposits 2000 per month and the bank pays interest at the rate of 10% per annum, find the total time for which he must hold the account to get 83100 at the time of maturity
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Given that,
Aryan has a recurring deposit account in a bank. If he deposits 2000 per month and the bank pays interest at the rate of 10% per annum.
So, we have
Amount deposited every month, P = Rs 2000
Rate of interest, r = 10 % per annum
Maturity Value, MV = Rs 83100
Let assume that number of instâllments be n.
We know,
Maturity Value (MV) on a instâllment of Rs P invested per month at the rate of r % per annum for n months is
So, on substituting the values, we get
On dividing both sides by 25, we get
So, Total time period is 3 years.
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More to know
Interest received on maturity on a instâllment of Rs P invested per month at the rate of r % per annum for n months is
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