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Sharukh Opened a Recurring Deposit Account in a Bank and Deposited Rs 800 per Month for Years. If

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Question

Sharukh opened a recurring deposit account in a bank and deposited Rs 800 per month for `1 1/2` years. If he recieved Rs 15,084 at the time of maturity, find the rate of interest per annum.

Sum
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Solution

Monthly deposit (P) = Rs 800 

`"n" = 3/2 xx 12` months = 18 months

Maturity value (M.V) = Rs 15084

Now, M.V = P x N + P x  `("n"("n" + 1))/(2 xx 12) xx "r"/100`

⇒ 15084 = 800 x 18 + 800 x `(18 xx 19)/24 xx "r"/100`

⇒ 15084 = 14400 + 114r

⇒ 114r = 684

⇒ r = `684/114` = 6%

Thus, the rate of interest per anum is 6%.

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