Question

Mr. Gupta opened a recurring deposit account in a bank. He deposited Rs. 2,500 per month for two years. At the time of maturity he got Rs. 67,500. Find:

(i) the total interest earned by Mr. gupta

(ii) the rate of interest per annum.

Answer 1

(i) Maturity value = Rs. 67,500

Money deposited = Rs. 2,500 × 24 = Rs. 60,000

Then total interest earned = Rs. 67,500 – Rs. 60,000 = Rs. 7,500 Ans.

(ii) Instalment per month (P) = Rs. 2,500

Number of months (n) = 24

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