Question

Zeba deposit Rs. 1000 in a bank which pays 6% per annum simple interest. Find the amount at the end of 2 years.

Answer 1

Answer:

Let the maturity period be n months,

P be the money deposited every month which is Rs.1000

and r be the rate of interest per annum which is 10%.

Now, the interest I received at the end of maturity is calculated by the following formula:

I=P×

24

n(n+1)

×

100

r

We are given I=5500, so

substituting the values, we get

⇒5550=1000×

24

n(n+1)

×

100

10

⇒n(n+1)=

100

5550×24

=1332

⇒n

2

+n−1332=0

⇒n

2

+37n−36n−1332=0

⇒(n−36)(n+37)=0

⇒n=36, −37

Since the maturity period cannot be negative, n=36.

Therefore, the total time for which the account was held was 36 months which is the same as 3 years. So the maturity period was 3 years.