English

In a recurring deposit account, John deposits ₹ 500 per month for 24 months. If the interest he earns is one-tenth of his total deposit, the rate of interest is ______.

Advertisements
Advertisements

Question

In a recurring deposit account, John deposits ₹ 500 per month for 24 months. If the interest he earns is one-tenth of his total deposit, the rate of interest is ______.

Options

  • 4.8%

  • 9.6%

  • 7.2%

  • 3.2%

MCQ
Fill in the Blanks
Advertisements

Solution

In a recurring deposit account, John deposits ₹ 500 per month for 24 months. If the interest he earns is one-tenth of his total deposit, the rate of interest is 9.6%.

Explanation:

P = ₹ 500,

n = 24 months,

Given I = `1/10 (500 xx 24)`

= ₹ 1200

We know that

`I = P xx (n(n + 1))/(2 xx 12) xx R/100`

`\implies 1200 = 500 xx (24 xx 25)/(2 xx 12) xx R/100`

`\implies` R = `1200 xx (2 xx 12)/(24 xx 25) xx 100/500`

∴ R = 9.6%

shaalaa.com
  Is there an error in this question or solution?

Video TutorialsVIEW ALL [1]

RELATED QUESTIONS

Priyanka has a recurring deposit account of Rs. 1000 per month at 10% per annum. If she gets Rs. 5550 as interest at the time of maturity, find the total time for which the account was held.


Katrina opened a recurring deposit account with a Nationalised Bank for a period of 2 years. If the bank pays interest at the rate 6% per annum and the monthly instalment is Rs. 1,000, find the:

  1. Interest earned in 2 years.
  2. Matured value.

Given below are the entries in a Saving Bank A/c passbook.

Date Particulars Withdrawals Deposit Balance
Feb8 B/F - - Rs. 8500
Feb 18 To self Rs. 4000 -  
April 12 By cash - Rs. 2230  
June 15 To self Rs. 5000 -  
July 8 By cash - Rs. 6000  

Calculate the interest for six months from February to July at 6% p.a.


The maturity value of an R.D. Account is ₹ 16176. If the monthly instalment is ₹ 400 and the rate of interest is 8%; find the time (period) of this R.D Account.


Rekha opened a recurring deposit account for 20 months. The rate of interest is 9% per annum and Rekha receives Rs. 441 as interest at the time of maturity. Find the amount Rekha deposited each month.


Mr. Banerjee opens a recurring deposit account for Rs 3,000 per month at 9% simple interest pa. On maturity, he gets Rs. 1,70,460. Find the period for which he continued with the account.


Given the following details, calculate the simple interest at the rate of 6% per annum up to June, 30:

Date Debit (in ₹) Credit (in ₹) Balance (in ₹)
January 1 - 24,000·00 24,000·00
January 20 5,000·00 - 19,000·00
January 29 - 10,000·00 29,000·00
March 15 - 8,000·00 37,000·00
April 3 - 7,653·00 44,653·00
May 6 3,040·00 - 41,613·00
May 8 - 5,087·00 46,700·00

Radha deposited ₹ 400 per month in a recurring deposit account for 18 months. The qualifying sum of money for the calculation of interest is ______.


₹ 800 per month is deposited in an R.D. account for one and half years. If the depositor gets ₹ 2,280 as interest at the time of maturity, the rate of interest is ______.


In a recurring deposit account, Mohit deposited ₹ 5,000 per month for one year and at maturity gets ₹ 67,500; the total interest earned is ______.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×