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Suresh has a recurring deposit account in a bank. He deposits ₹ 2000 per month and the bank pays interest at the rate of 8% per annum. If he gets ₹ 1040 as interest at the time of maturity

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Question

Suresh has a recurring deposit account in a bank. He deposits ₹ 2000 per month and the bank pays interest at the rate of 8% per annum. If he gets ₹ 1040 as interest at the time of maturity, find in years total time for which the account was held.

Sum
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Solution

Deposit per month P = ₹ 2000

Rate of interest R = 8%

Interest earned, I = ₹ 1040

Let n months be the length of time for which money is invested.

Then, by formula

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

1040 = `2000 xx (n(n + 1))/(2 xx 12) xx 8/100`

1040 = `(20 xx n xx (n + 1))/3`

52 × 3 = n2 + n

n2 + n – 156 = 0

n2 + 13n – 12n – 156 = 0

n(n + 13) – 12(n + 13) = 0

(n – 12)(n + 13) = 0

n = 12    ...(∵ n = –13, is not possible)

As a result, the time period for which money is invested is 12 months or 1 year.

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Chapter 2: Banking - Exercise 2A [Page 23]

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Nootan Mathematics [English] Class 10 ICSE
Chapter 2 Banking
Exercise 2A | Q 15. | Page 23

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