Chapter 2 : Banking (Recurring Deposit Accounts) - Selina Solutions for Class 10 Maths ICSE

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Chapter 2 - Banking (Recurring Deposit Accounts) Excercise 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

Instalment per month(P) = Rs600

Number of months(n) = 20

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

The amount that Manish will get at the time of maturity

=Rs(600x20)+ Rs1,050

=Rs12,000+ Rs1,050

= Rs13,050 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

Instalment per month(P) = Rs640

Number of months(n) = 54

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

The amount that Manish will get at the time of maturity

=Rs(640x54)+ Rs9,504

=Rs34,560+ Rs9,504

= Rs44,064 Ans.

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

Instalment per month(P) = Rs1,200

Number of months(n) = 36

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

The amount that A will get at the time of maturity

=Rs(1,200x36)+ Rs6,660

=Rs43,200+ Rs6,660

= Rs49,860

For B

Instalment per month(P) = Rs1,500

Number of months(n) = 30

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

 

 

 

The amount that B will get at the time of maturity

=Rs(1,500x30)+ Rs5,812.50

=Rs45,000+ Rs5,812.50

= Rs50,812.50

Difference between both amounts= Rs50,812.50 - Rs49,860

= Rs952.50

 

Then B will get more money than A by Rs952.50 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 Instalment per month(P) = Rs y

Number of months(n) = 12

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

Maturity value= Rs(y x12)+Rs0.715y= Rs12.715y

Given maturity value= Rs12,715

Then Rs12.715y = Rs12,715

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 instalments.

Solution 5

Let Instalment per month(P) = Rs y

Number of months(n) = 42

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

Maturity value= Rs(y x42)+Rs9.03y= Rs51.03y

Given maturity value= Rs10,206

Then Rs51.03y = Rs10206

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)

Instalment per month(P) = Rs140

Number of months(n) = 48

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

Maturity value= Rs(140 x48)+Rs(137.20)r

Given maturity value= Rs8,092

Then Rs(140 x48)+Rs(137.20)r = Rs8,092

137.20r = Rs8,092 -; Rs6,720

r =

(b)

Instalment per month(P) = Rs300

Number of months(n) = 24

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

Maturity value= Rs(300 x24)+Rs(75)r

Given maturity value= Rs7,725

Then Rs(300 x24)+Rs(75)r = Rs7,725

75 r = Rs7,725 -; Rs7,200

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

Instalment per month(P) = Rs150

Number of months(n) = 8

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

The amount that Manish will get at the time of maturity

=Rs(150x8)+ Rs36

=Rs1,200+ Rs36

= Rs1,236 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

Instalment per month(P) = Rs350

Number of months(n) = 15

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

Maturity value= Rs(350 x15)+Rs(35)r

Given maturity value= Rs5,565

Then Rs(350 x15)+Rs(35)r = Rs5,565

35r = Rs5,565 -; Rs5,250

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

Instalment per month(P) = Rs1,200

Number of months(n) = n

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

Maturity value= Rs(1,200x n)+Rs4n(n+1)= Rs(1200n+4n2+4n)

Given maturity value= Rs12,440

Then 1200n+4n2+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

Instalment per month(P) = Rs300

Number of months(n) = n

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

Maturity value= Rs(300x n)+Rs1.5n(n+1)

= Rs(300n+1.5n2+1.5n)

Given maturity value= Rs8,100

Then 300n+1.5n2+1.5n = 8,100

Then time= 2years

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 = Rs67,500

Money deposited= Rs2,500 x 24= Rs60,000

Then total interest earned= Rs67,500 - Rs60,000= Rs7,500 Ans.

(ii)

Instalment per month(P) = Rs2,500

Number of months(n) = 24

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

Then 625 r= 7500

Chapter 2 - Banking (Recurring Deposit Accounts) Excercise 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

Instalment per month(P) = Rs600

Number of months(n) = 48

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

 

 

The amount that Manish will get at the time of maturity

=Rs(600x48)+ Rs4,704

=Rs28,800+ Rs4,704

= Rs33,504Ans.

 

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) = Rs80

Number of months(n) = 18

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

 

 

Maturity value= Rs(80 x18)+Rs(11.4r)

Given maturity value= Rs1,554

ThenRs(80 x18)+Rs(11.4r) = Rs1,554

 11.4r = Rs1,554 - Rs1,440

 

 

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) = Rs400

Number of months(n) = n

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

 

 

 

Maturity value= Rs(400x n)+

Given maturity value= Rs16,176

ThenRs(400x n)+ = Rs16,176

 1200n +4n2+4n= Rs48,528

 4n2+1204n = Rs48,528

 n2+301n - 12132= 0

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

 n= -337 or n=36

 

 

Then number of months = 36months= 3yearsAns.

 

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) = 24

Rate of interest®= 8%p.a.

 

 

Maturity value= Rs(P x 24)+ Rs 2P= Rs26P

Given maturity value= Rs30,000

 

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) = Rs900

Number of months(n) = 48

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

Maturity value= Rs(900 x48)+Rs(882)r

Given maturity value= Rs52,020

ThenRs(900 x48)+Rs(882)r = Rs52,020

 882r = Rs52,020 - Rs43,200

 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) = Rs1,800

Number of months(n) = 48

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

 

 

Maturity value= Rs(1,800 x48)+Rs(1,764)r

Given maturity value= Rs1,08,450

ThenRs(1,800 x48)+Rs(1764)r = Rs1,08,450

 1764r = Rs1,08,450 - Rs86,400

 

 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 instalment.

Solution 8

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 instalment, P

Now,

So, the monthly instalment 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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