# Mr. Menon Deposit Rs 1,200 per Month in a Cumulative Deposit Account for a Period of 5 Years. After the End of the Period, - Mathematics

Sum

Mr. Menon deposit Rs 1,200 per month in a cumulative deposit account for a period of 5 years. After the end of the period, he will receive Rs 88,470. (a) Find the rate of the interest per annum. (b) Find the total interest that Mr. Menon will earn.

#### Solution

Given that Recurring deposit per month =Rs 1,200, Period= 5 years = 60

Months, R=R0/o, Maturity value =Rs 88,470 Money deposited= Monthly value x No ofMonths=1,200 x 60= Rs 72,000

⇒ Interest that gets for this period =Maturity Value - Amount deposited

= Rs (88,470 - 72,000)

=Rs 16,470

Total Principal for 1 Month = Rs (1200 xx (60)(60 + 1))/2 = Rs 2196000

Rs 16470 = ("R" xx 2196000)/(12 xx 100)

⇒ R = (16470 xx 12 xx 100)/2196000

R = 9 %

Is there an error in this question or solution?

#### APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 3 Banking
Exercise 3.2 | Q 4 | Page 51