# SELINA Solutions for Class 10 Maths Chapter 2 - Banking (Recurring Deposit Accounts)

Practise textbook exercises for your board exam effectively with Selina Solutions for ICSE Class 10 Mathematics Chapter 2 Banking (Recurring Deposit Accounts). Learn in detail about the recurring deposit account in a bank and how it is beneficial for account holders in this chapter. With TopperLearning’s Maths solutions, learn to calculate the maturity value of an account based on monthly instalment amount and rate of interest.

Revise different types of problems with our Selina textbook solutions for ICSE Class 10 Maths. The solutions will also guide you with the right steps to find the time required to earn a specific maturity value according to the given data.

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## Chapter 2 - Banking (Recurring Deposit Accounts) Exercise Ex. 2(A)

Question 1

Manish opens a Recurring Deposit Account with the Bank of Rajasthan and deposits 600 per month for 20 months. Calculate the maturity value of this account, if the bank pays interest at the rate of 10% per annum.

Solution 1

Installment per month(P) = Rs. 600

Number of months(n) = 20

Rate of interest (r) = 10% p.a.

The amount that Manish will get at the time of maturity

=Rs (600 x 20)+ Rs 1,050

=Rs 12,000+ Rs 1,050

= Rs 13,050 Ans.

Question 2

Mrs. Mathew opened a Recurring Deposit Account in a certain bank and deposited 640 per month for 41/2 years. Find the maturity value of this account, if the bank pays interest at the rate of 12% per year.

Solution 2

Installment per month(P) = Rs 640

Number of months(n) = 4.5 × 12 = 54

Rate of interest(r)= 12% p.a.

The amount that Manish will get at the time of maturity

=Rs (640 x 54)+ Rs 9,504

=Rs 34,560+ Rs 9,504

= Rs 44,064

Question 3

Each of A and B both opened recurring deposit accounts in a bank. If A deposited 1,200 per month for 3 years and B deposited 1,500 per month for years; find, on maturity, who will get more amount and by how much? The rate of interest paid by the bank is 10% per annum.

Solution 3

For A

Installment per month(P) = Rs 1,200

Number of months(n) = 3 × 12 = 36

Rate of interest(r)= 10% p.a.

The amount that A will get at the time of maturity

=Rs (1,200 x 36)+ Rs 6,660

=Rs 43,200+ Rs 6,660

= Rs 49,860

For B

Installment per month(P) = Rs 1,500

Number of months(n) = 2.5 × 12 = 30

Rate of interest(r)= 10% p.a.

The amount that B will get at the time of maturity

=Rs(1,500 x 30)+ Rs 5,812.50

=Rs 45,000+ Rs 5,812.50

= Rs 50,812.50

Difference between both amounts= Rs 50,812.50 - Rs 49,860

= Rs 952.50

Then B will get more money than A by Rs 952.50 Ans.

Question 4

Ashish deposits a certain sum of money every month is a Recurring Deposit Account for a period of 12 months. If the bank pays interest at the rate of 11% p.a. and Ashish gets 12,715 as the maturity value of this account, what sum of money did money did he pay every month?

Solution 4

Let Installment per month(P) = Rs y

Number of months(n) = 12

Rate of interest(r)= 11%p.a.

Maturity value= Rs (y x 12) + Rs 0.715 y = Rs 12.715 y

Given maturity value= Rs 12,715

Then Rs 12.715 y = Rs 12,715

Ans.

Question 5

A man has a Recurring Deposit Account in a bank for 3½ years. If the rate of interest is 12% per annum and the man gets 10,206 on maturity, find the value of monthly installments.

Solution 5

Let Installment per month(P) = Rs y

Number of months(n) = 3.5 × 12 = 42

Rate of interest(r) = 12% p.a.

Maturity value= Rs(y x 42) + Rs 9.03y = Rs 51.03y

Given maturity value = Rs 10,206

Then Rs 51.03y = Rs 10206

Ans.

Question 6

(i) Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits 140 per month for 4 years. If he gets 8,092 on maturity, find the rate of interest given by the bank.

(ii) David opened a Recurring Deposit Account in a bank and deposited 300 per month for two years. If he received 7,725 at the time of maturity, find the rate of interest per annum.

Solution 6

(a)

Installment per month(P) = Rs 140

Number of months(n) = 4 × 12 = 48

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

Maturity value= Rs (140 x 48) + Rs (137.20)r

Given maturity value= Rs 8,092

Then Rs(140 x 48)+Rs (137.20)r = Rs 8,092

137.20r = Rs 8,092 - Rs 6,720

r =

(b)

Installment per month(P) = Rs 300

Number of months(n) = 4 × 12 = 24

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

Maturity value= Rs (300 x 24)+Rs(75)r

Given maturity value = Rs 7,725

Then Rs(300 x 24) + Rs(75)r = Rs 7,725

75 r = Rs 7,725 - Rs 7,200

r =

Question 7

Amit deposited 150 per month in a bank for 8 months under the Recurring Deposit Scheme. What will be the maturity value of his deposits, if the rate of interest is 8% per annum and interest is calculated at the end of every month?

Solution 7

Installment per month(P) = Rs 150

Number of months(n) = 8

Rate of interest(r)= 8% p.a.

The amount that Manish will get at the time of maturity

=Rs (150 x 8)+ Rs 36

=Rs 1,200+ Rs 36

= Rs 1,236 Ans.

Question 8

Mrs. Geeta deposited 350 per month in a bank for 1 year and 3 months under the Recurring Deposit Scheme. If the maturity value of her deposits is 5,565; find the rate of interest per annum.

Solution 8

Installment per month(P) = Rs 350

Number of months(n) = 12 + 3 = 15

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

Maturity value= Rs (350 x 15) + Rs (35)r

Given maturity value= Rs 5,565

Then Rs (350 x 15) + Rs (35)r = Rs 5,565

35r = Rs 5,565 - Rs 5,250

r =

Question 9

A recurring deposit account of 1,200 per month has a maturity value of 12,440. If the rate of interest is 8% and the interest is calculated at the end of every month; find the time (in months) of this Recurring Deposit Account.

Solution 9

Installment per month(P) = Rs 1,200

Number of months(n) = n

Let rate of interest(r)= 8 %p.a.

Maturity value= Rs (1,200 x n) + Rs 4n (n + 1)= Rs (1200n + 4n+ 4n)

Given maturity value= Rs 12,440

Then 1200n + 4n+ 4n = 12,440

Then number of months = 10 Ans.

Question 10

Mr. Gulati has a Recurring Deposit Account of 300 per month. If the rate of interest is 12% and the maturity value of this account is 8,100; find the time (in years) of this Recurring Deposit Account.

Solution 10

Installment per month(P) = Rs 300

Number of months(n) = n

Let rate of interest(r)= 12 %p.a.

Maturity value= Rs (300 x n) + Rs 1.5n(n + 1)

= Rs (300n + 1.5n+ 1.5n)

Given maturity value = Rs 8,100

Then 300n + 1.5n+ 1.5n = 8,100

Then time = 2 years

Question 11

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

(i) the total interest earned by Mr. Gupta

(ii) the rate of interest per annum.

Solution 11

(i)

Maturity value = Rs 67,500

Money deposited = Rs 2,500 x 24 = Rs 60,000

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

(ii)

Installment per month(P) = Rs 2,500

Number of months(n) = 24

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

Then 625 r = 7500

## Chapter 2 - Banking (Recurring Deposit Accounts) Exercise Ex. 2(B)

Question 1

Pramod deposits 600 per month in a Recurring Deposit Account for 4 years. If the rate of interest is 8% per year; calculate the maturity value of his account.

Solution 1

Installment per month(P) = Rs 600

Number of months(n) = 4 × 12 = 48

Rate of interest(r)= 8%p.a.

The amount that Manish will get at the time of maturity

=Rs (600 x 48)+ Rs 4,704

=Rs 28,800+ Rs 4,704

= Rs 33,504 Ans.

Question 2

Ritu has a Recurring Deposit Account in a bank and deposits 80 per month for 18 months. Find the rate of interest paid by the bank if the maturity value of account is 1,554.

Solution 2

Installment per month(P) = Rs 80

Number of months(n) = 18

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

Maturity value= Rs (80 x 18) + Rs (11.4r)

Given maturity value= Rs 1,554

Then Rs (80 x 18)+Rs (11.4r) = Rs 1,554

11.4r = Rs 1,554 - Rs 1,440

Question 3

The maturity value of a R.D. Account is 16,176. If the monthly installment is 400 and the rate of interest is 8%; find the time (period) of this R.D Account.

Solution 3

Installment per month(P) = Rs 400

Number of months(n) = n

Let rate of interest(r)= 8 %p.a.

Maturity value= Rs (400 x n)+

Given maturity value= Rs 16,176

Then Rs (400 x n)+= Rs 16,176

1200n + 4n+ 4n = Rs 48,528

4n+ 1204n = Rs 48,528

n+ 301n - 12132 = 0

(n + 337)(n - 36)=0

n = -337 or n = 36

Then number of months = 36 months = 3 years Ans.

Question 4

Mr. Bajaj needs 30,000 after 2 years. What least money (in multiple of 5) must he deposit every month in a recurring deposit account to get required money after 2 years, the rate of interest being 8% p.a.?

Solution 4

Let installment per month = Rs P

Number of months(n) = 2 × 12 = 24

Rate of interest = 8%p.a.

Maturity value= Rs (P x 24) + Rs 2P = Rs 26P

Given maturity value = Rs 30,000

Question 5

Mr. Richard has a recurring deposit account in a post office for 3 years at 7.5% p.a. simple interest. If he gets Rs. 8,325 as interest at the time of maturity, find:

i. the monthly income

ii. the amount of maturity

Solution 5

Let the monthly deposit be P

Interest = Rs. 8,325

Rate of interest = 7.5%

Time = 3 years = 36 months

Question 6

Gopal has a cumulative deposit account and deposits 900 per month for a period of 4 years he gets 52,020 at the time of maturity, find the rate of interest.

Solution 6

Installment per month(P) = Rs 900

Number of months(n) = 48

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

Maturity value= Rs (900 x 48) + Rs (882)r

Given maturity value = Rs 52,020

Then Rs (900 x 48) + Rs(882)r = Rs 52,020

882r = Rs 52,020 - Rs 43,200

r =

Question 7

Deepa has a 4-year recurring deposit account in a bank and deposits 1,800 per month. If she gets 1,08,450 at the time of maturity, find the rate of interest.

Solution 7

Installment per month(P) = Rs 1,800

Number of months(n) = 4 × 12 = 48

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

Maturity value= Rs (1,800 x 48) + Rs(1,764)r

Given maturity value= Rs 1,08,450

Then Rs (1,800 x 48) + Rs(1764)r = Rs 1,08,450

1764r = Rs 1,08,450 - Rs 86,400

r =

Question 8

Mr. Britto deposits a certain sum of money each month in a Recurring Deposit Account of a bank. If the rate of interest is of 8% per annum and Mr. Britto gets Rs. 8,088 from the bank after 3 years, find the value of his monthly installment.

Solution 8

Let the value of the monthly installment be Rs. P.

Thus, the value of his monthly installment is Rs. 200.

Question 9

Solution 9

Question 10

Katrina opened a recurring deposit account with a Nationalised Bank for a period of 2 years. If the bank pays interest at the rate of 6% per annum and the monthly installment is Rs. 1,000, find the :

(i) interest earned in 2 years

(ii) maturity value

Solution 10

Question 11

Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1,200 as interest at the time of maturity, find:

(i) the monthly instalment

(ii) the amount of maturity.

Solution 11

Interest, I = Rs. 1,200

Time, n = 2 years = 2 × 12 = 24 months

Rate, r = 6%

(i) To find: Monthly installment, P

Now,

So, the monthly installment is Rs. 800.

(ii) Total sum deposited = P × n = Rs. 800 × 24 = Rs. 19,200

Amount of maturity = Total sum deposited + Interest on it

= Rs. (19,200 + 1,200)

= Rs. 20,400

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