Question

Ross deposited ₹600 per month in a recurring deposit account for 3 years. If the bank paid him ₹24930 at the time of maturity, find the total interest paid by the bank.

₹

What the rate of interest?

%

Answer 1

Answer:

Maturity value for the recurring deposits = Total Sum of Money deposited + Interest earned on it

P = Amount deposited every month

n = number of months the deposits were made

r\% = rate of interest

P = Rs. \ 600, \ n = 20, \ r = 10\%

Maturity Value

= P \times n + P \times

\frac{n(n+1)}{2 \times 12}

\times

\frac{r}{100}

= 600 \times 20 + 600 \times

\frac{20(20+1)}{2 \times 12}

\times

\frac{10}{100}

= Rs. 13050

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