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David Opened a Recurring Deposit Account in a Bank and Deposited Rs 300 per Month for Two Years. If He Received Rs 7,725 at the Time of Maturity, Find the Rate of Interest per Annum. - ICSE Class 10 - Mathematics

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Question

David opened a Recurring Deposit Account in a bank and deposited Rs 300 per month for two years. If he received Rs 7,725 at the time of maturity, find the rate of interest per annum.

Solution

Instalment per month(P) = Rs 300

Number of months(n) = 24

Let rate of interest(r)= r% p.a

`∴ "S.I" = "P" xx ("n"("n" + 1))/(2 xx 12)  xx "r"/100`

`= 300 xx (24(24 + 1))/(2 xx 12) xx "r"/100`

`= 300 xx 600/24 xx "r"/100 = "Rs" (75)"r"`

Maturity value = Rs (300 × 24) + Rs (75)r

Given maturity value = Rs 7,725

Then ₹ (300 × 24) + Rs (75)r = Rs 7,725

⇒ 75 r = Rs 7,725 – Rs 7,200

`=> "r" = 525/75 = 7%`

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 Selina Solution for Selina ICSE Concise Mathematics for Class 10 (2019-20) (2020 to Current)
Chapter 2: Banking (Recurring Deposit Account)
Exercise 2(A) | Q: 6.2 | Page no. 23

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Solution David Opened a Recurring Deposit Account in a Bank and Deposited Rs 300 per Month for Two Years. If He Received Rs 7,725 at the Time of Maturity, Find the Rate of Interest per Annum. Concept: Types of Accounts.
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