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Shahrukh opened a Recurring Deposit Account in a bank and deposited Rs. 800 per month for 112 years. If he received Rs. 15,084 at the time of maturity, find the rate of interest per annum.

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Question

Shahrukh opened a Recurring Deposit Account in a bank and deposited Rs. 800 per month for `1 1/2` years. If he received Rs. 15,084 at the time of maturity, find the rate of interest per annum.

Sum
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Solution

Money deposited by Shahrukh per month (P) = Rs. 800

r = ?

No. of months (n) = `1(1)/(2)`

= `(3)/(2) xx 12`

= 18 months

∴ Interest = `P xx (n(n + 1))/(2 xx 12) xx r/(100)`

= `₹ 800 xx (18(18 + 1))/(2 xx 12) xx r/(100)`

= `₹ 800 xx (18 xx 19)/(2 xx 12) xx r/(100)`

= 114r

∴ Maturity amount = 114r + 800 × 18

⇒ ₹ 15084 = 114r + ₹ 14400

⇒ ₹ 15084 – ₹ 14400 = 114r

⇒ 684 = 114r

r = `(684)/(114)`

= 6%

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Chapter 2: Banking - Exercise 2.1

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Selina Concise Mathematics [English] Class 10 ICSE
Chapter 2 Banking (Recurring Deposit Account)
Exercise 2 (B) | Q 9. | Page 24

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