Question

Vishal deposited rs 200 per month for 5 years in a recurring deposit account in a post office.If he received rs 13,830 find the rate of interest

Answer 1

Time = 5 years which is equal to 60 months

The amount would be = 200 x 60 x 61/2 = 366000

Now we will assume the rate of interest to be r%

Simple Interest = 366000 x r x 1 / 100 x 12

= 305 r

Principal = 200 x 60

= R. 12000

Amount = Rs. 13830

Simple Interest = Rs. 1830

305 r = 1830

= 6

R = 6%

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