upriya has a recurring deposit account in a bank. She deposits Rs 600 per month for 6 years. If at the end of maturity period she gets Rs 53,712, find the rate of interest.

 

Asked by paawanthaker2305 | 29th Jul, 2020, 03:56: PM

Expert Answer:

This can be solved as follows:
begin mathsize 16px style Here space straight P space equals space Rs. space 600 space
Time space equals space 6 space years space equals space 72 space months
Rate space of space interest space equals space straight r percent sign
Interest space equals space straight P space cross times space fraction numerator straight n left parenthesis straight n plus 1 right parenthesis over denominator 2 space cross times space 12 end fraction cross times space straight r over 100
space space space space space space space space space space space space equals 600 space cross times space fraction numerator 72 left parenthesis 72 plus 1 right parenthesis over denominator 2 space cross times space 12 end fraction cross times space straight r over 100
space space space space space space space space space space space space equals space 3 cross times 73 straight r
space space space space space space space space space space space space equals space 1314 straight r space space space space space space space... space left parenthesis straight i right parenthesis
Maturity space Value space equals space straight P space cross times space straight n space plus space straight P space space fraction numerator straight n left parenthesis straight n plus 1 right parenthesis over denominator 2 space cross times space 12 end fraction cross times space straight r over 100
rightwards double arrow space space 53712 space space space equals space 600 cross times 6 cross times 12 space plus space 1314 straight r space space space... space from space left parenthesis straight i right parenthesis
rightwards double arrow space space 53712 space space space equals space 43200 space plus space 1314 straight r
rightwards double arrow space 1314 straight r space equals space 10512
rightwards double arrow space straight r space equals space 8
Hence comma space the space rate space of space interest space equals space 8 percent sign end style

Answered by Renu Varma | 30th Jul, 2020, 11:41: AM