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

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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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 1,200 per month for 3 years and B deposited Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 1,500 per month for Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts10,206 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Given maturity value = Rs 10,206

 

Then Rs 51.03y = Rs 10206

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts Ans.

Question 6

(i) Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts140 per month for 4 years. If he gets Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts8,092 on maturity, find the rate of interest given by the bank.

(ii) David opened a Recurring Deposit Account in a bank and deposited Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts300 per month for two years. If he received Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts7,725 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts137.20r = Rs 8,092 - Rs 6,720

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts r = Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

(b)

Installment per month(P) = Rs 300

Number of months(n) = 4 × 12 = 24

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts 75 r = Rs 7,725 - Rs 7,200

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts r = Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Question 7

Amit deposited Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts150 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts350 per month in a bank for 1 year and 3 months under the Recurring Deposit Scheme. If the maturity value of her deposits is Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts5,565; 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts35r = Rs 5,565 - Rs 5,250

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts r = Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Question 9

A recurring deposit account of Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts1,200 per month has a maturity value of Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts12,440. 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Then number of months = 10 Ans.

Question 10

Mr. Gulati has a Recurring Deposit Account of Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts300 per month. If the rate of interest is 12% and the maturity value of this account is Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts8,100; 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Then time = 2 years

Question 11

Mr. Gupta opened a recurring deposit account in a bank. He deposited Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts2,500 per month for two years. At the time of maturity he got Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts67,500. 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Then 625 r = 7500

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Question 1

Pramod deposits Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts600 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

 

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 Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts80 per month for 18 months. Find the rate of interest paid by the bank if the maturity value of account is Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts1,554.

Solution 2

Installment per month(P) = Rs 80

Number of months(n) = 18

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

 

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts11.4r = Rs 1,554 - Rs 1,440

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

 

Question 3

The maturity value of a R.D. Account is Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts16,176. If the monthly installment is Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts400 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

Maturity value= Rs (400 x n)+Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Given maturity value= Rs 16,176

Then Rs (400 x n)+Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts= Rs 16,176

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts1200n + 4n+ 4n = Rs 48,528

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts4n+ 1204n = Rs 48,528

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accountsn+ 301n - 12132 = 0

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts(n + 337)(n - 36)=0

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accountsn = -337 or n = 36

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

 

Question 4

Mr. Bajaj needs Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts30,000 after 2 years. What least money (in multiple of Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts5) 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

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

Given maturity value = Rs 30,000

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Question 6

Gopal has a cumulative deposit account and deposits Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts900 per month for a period of 4 years he gets Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts52,020 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts882r = Rs 52,020 - Rs 43,200

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accountsr = Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

 

Question 7

Deepa has a 4-year recurring deposit account in a bank and deposits Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts1,800 per month. If she gets Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts1,08,450 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.

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts1764r = Rs 1,08,450 - Rs 86,400

 

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accountsr = Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

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.

 

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

 

 

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

 

Question 9

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

Solution 9

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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,

Selina Solutions Icse Class 10 Mathematics Chapter - Banking Recurring Deposit Accounts

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