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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: - Mathematics

Question

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

Solution

Given,

P = Rs. 1000

n = 2 years = 24 months

r = 6%

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

`= 1000 xx (24  xx 25)/2 xx 6/(12 xx 100)`

= 1500

Thus, the interest earned in 2 years is Rs. 1500.

2)  Sum deposited in two years 24 x 1000 = 24,000

Maturity value = Total sum deposited in two years +  Interest

= 24000 + 1500

= 25500

Thus, the maturity value is Rs. 25,500.

  Is there an error in this question or solution?
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APPEARS IN

 Selina Solution for Concise Mathematics for Class 10 ICSE (2020 (Latest))
Chapter 2: Banking (Recurring Deposit Account)
Exercise 2(B) | Q: 10 | Page no. 24
 2014-2015 (March) (with solutions)
Question 4.1 | 3.00 marks
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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: Concept: Computation of Interest.
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