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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. - ICSE Class 10 - Mathematics

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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.

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`

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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Solution 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. Concept: Types of Accounts.
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