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Mr. Sameer has a recurring deposit account and deposits ₹ 600 per month for 2 years. If he gets ₹ 15600 at the time of maturity, find the rate of interest earned by him.

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Question

Mr. Sameer has a recurring deposit account and deposits ₹ 600 per month for 2 years. If he gets ₹ 15600 at the time of maturity, find the rate of interest earned by him.

Sum
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Solution

Qualifying Sum = `(600 xx 24 xx 25)/2` = 1,80,000

Interest = `(600 xx 24 xx 25)/2 xx r/100 xx 1/12` = 150r

Maturity Value = ₹ 15600

600 × 24 + 150r = ₹ 15600

150r = ₹ 15600 – ₹ 14400

`\implies` r = `1200/150` = 8%

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