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Ahmed has a recurring deposit account in a bank. He deposits Rs. 2,500 per month for 2 years. If he gets Rs. 66,250 at the time of maturity, find 1. The interest paid by the bank

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Question

Ahmed has a recurring deposit account in a bank. He deposits Rs. 2,500 per month for 2 years. If he gets Rs. 66,250 at the time of maturity, find

  1. The interest paid by the bank
  2. The rate of interest
Sum
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Solution

1. P = Rs. 2500, n = 2 years = (2 × 12) months = 24 months

Total Principal = Rs. 2,500 × 24

= Rs. 60,000

Amount = Rs. 66,250

Interest = Amount – Principal

= Rs. 66,250 – Rs. 60,000

= Rs. 6,250

Thus, the interest paid by the bank is Rs. 6,250.

2. Let r be the rate of interest.

`N = (n(n + 1))/(2 xx 12)` 

= `(24 xx 25)/(2 xx 12)` 

= 25 years

This is equivalent to depositing Rs. 2,500 for 25 years.

Interest = `(P xx N xx R)/100`

⇒ `6250 = (2500 xx 25 xx R)/100`

⇒ R = 10

Thus, the rate of interest is 10%.

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Chapter 2: Banking - EXERCISE 2 [Page 19]

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R.S. Aggarwal Mathematics [English] Class 10 ICSE
Chapter 2 Banking
EXERCISE 2 | Q 6. | Page 19

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