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Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits Rs. 140 per month for 4 years. If he gets Rs. 8,092 on maturity, find the rate of interest given by the bank.

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Question

Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits Rs. 140 per month for 4 years. If he gets Rs. 8,092 on maturity, find the rate of interest given by the bank.

Sum
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Solution

Installment per month (P) = Rs. 140

Number of months (n) = 48

Let rate of interest (r) = r % p.a.

∴ `S.I. = P xx (n(n + 1))/(2 xx 12) xx r/100`

= `140 xx (48(48 + 1))/(2xx 12) xx r/100`

= `140 xx 2352/24 xx r/100`

= Rs. (137.20)r

Maturity value = Rs. (140 × 48) + Rs. (137.20)r

Given maturity value = Rs. 8,092

Then Rs. (140 × 48) + Rs. (137.20)r = Rs. 8,092

⇒ 137.20r = Rs. 8,092 – Rs. 6,720

⇒ r = `1372/137.20` = 10%

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Chapter 2: Banking (Recurring Deposit Account) - Exercise 2 (A) [Page 23]

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Selina Concise Mathematics [English] Class 10 ICSE
Chapter 2 Banking (Recurring Deposit Account)
Exercise 2 (A) | Q 6.(i) | Page 23

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