Question

Mr. Sonu has a recurring deposit account and deposits ₹ 750 per month for 2 years. If he gets ₹ 19125 at the time of maturity, find the rate of interest.

Answer 1

P = 750 (monthly deposit)

n = 24 months (2 years)

MV = ₹ 19125

Total amount deposited:

= P × n

= 750 × 24

= ₹ 18000

Interest earned:

Interest = 19125 – 18000

= ₹ 1125

`1125 = (750 xx 24 xx 25 xx r)/(2 xx 12 xx 100)`

`=> 1125 = (750 xx 600 xx r)/2400`

`=> 1125 = (450000r)/2400`

`=> r = 1125 xx 2400/450000`

r = 6%