Question

Shahrukh opened a Recurring deposit Account in a bank and deposited Rs. 800 per month for 1 1/2 years.

Answer 1

Observe the question and we can get the following values :-

Maturity Value = 15084
Number of Months (n) = 18
Amount deposited each month = 800
Rate of Interest (r) = ? (unknown)

We have to find the rate of interest.

Consider the following formula :-

Maturity Value = Pn + Pnr * (n+1) / 2400

Now substitute the known values.

15084 = 800 * 18 + 800 * 18 * r * (18+1) / 2400
15084 = 14400 + 273600r / 2400
15084 = 14400 + 114r
114r = 15084 - 14400
114r = 684
r = 684 / 114
r = 6%

∴ Rate of Interest = 6%

Answer 2

Step-by-step explanation:

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