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Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1200 as interest at the time of maturity, find: the monthly instalment. the amount of maturity.

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Question

Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1200 as interest at the time of maturity, find:

  1. the monthly instalment.
  2. the amount of maturity.
Sum
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Solution

Interest = Rs. 1200

Period (n) = 2 years = 24 months

Rate (r) = 6% p.a.

i. Let monthly deposit = ₹ P p.m.

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

`1200 = (P xx 24 xx 25)/(24) xx (6)/(100)`

`\implies 1200 = (6)/(4)p`

∴ `P = (1200 xx 4)/(6) = 800`

∴ Monthly deposit = ₹ 800

ii. Maturity value = P × n + Interest

= ₹ 800 × 24 + ₹ 1200

= ₹ 19200 + ₹ 1200

= ₹ 20400

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Chapter 2: Banking - Exercise 2.1

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Selina Concise Mathematics [English] Class 10 ICSE
Chapter 2 Banking (Recurring Deposit Account)
Exercise 2 (B) | Q 11. | Page 24

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