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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

#### 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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#### APPEARS IN

Selina Solution for Selina ICSE Concise Mathematics for Class 10 (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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