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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,

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Question

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.

Sum
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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 %

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Chapter 2: Banking - Exercise 3.2 [Page 51]

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

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