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John deposited Rs 400 every month in a bank’s recurring deposit account for 2 1 2 years. If he gets Rs 1085 as interest at the time of maturity, then the rate of interest per annum is

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Question

John deposited Rs 400 every month in a bank’s recurring deposit account for `2(1)/(2)` years. If he gets Rs 1085 as interest at the time of maturity, then the rate of interest per annum is

Options

  • 6%

  • 7%

  • 8%

  • 9%

MCQ
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Solution

Deposit(P) = Rs400 per month
Period(n) = `2(1)/(2)` years = 3 months
Interest = Rs1085
Let r% be the rate of interest
∴ Interest 

= `("P" xx "n" xx ("n" + 1))/(2 xx 12) xx "r"/(100)`

1085 = `₹(400 xx 30 xx 31 xx "r")/(2 xx 12 xx 100)`

1085 = 155r

⇒ r = `(1085)/(155)` = 7
∴  Rate 7% p.a.

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Chapter 2: Banking - Multiple Choice Question

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ML Aggarwal Understanding Mathematics [English] Class 10 ICSE
Chapter 2 Banking
Multiple Choice Question | Q 4

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