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Questions
David opened a Recurring Deposit Account in a bank and deposited Rs. 300 per month for two years. If he received Rs. 7,725 at the time of maturity, find the rate of interest per annum.
David opened a Recurring Deposit Account in a bank and deposited Rs. 300 per month for two years. If he received Rs. 7725 at the time of maturity, find the rate of interest per annum. (2008)
Solution 1
Instalment per month (P) = Rs. 300
Number of months (n) = 24
Let rate of interest (r) = r% p.a
∴ `S.I. = P xx (n(n + 1))/(2 xx 12) xx r/100`
= `300 xx (24(24 + 1))/(2 xx 12) xx r/100`
= `300 xx 600/24 xx r/100`
= Rs. (75)r
Maturity value = Rs. (300 × 24) + Rs. (75)r
Given maturity value = Rs. 7,725
Then Rs. (300 × 24) + Rs. (75)r = Rs. 7,725
⇒ 75r = Rs. 7,725 – Rs. 7,200
⇒ r = `525/75` = 7%
Solution 2
Deposit during one month (P) = Rs. 300
Period = 2 years = 24 months.
Maturity value = Rs. 7725
Let R be the rate percent, then
Now principal for 1 month
= `(P xx n(n + 1))/(2)`
= `(300 xx 24(24 + 1))/(2)`
= `(300 xx 24 xx 25)/(2)`
= Rs. 90000
∴ Interest earned
= `(PRT)/(100)`
= `(90000 xx R xx 1)/(100 xx 12)`
= 75R
Now 300 × 24 + 75R = 7725
⇒ 7200 + 75R = 7725
⇒ 75R
= 7725 – 7200
= 525
⇒ R = `(525)/(75)` = 7
∴ Rate of Interest = 7% p.a.
RELATED QUESTIONS
Ahmed has a recurring deposit account in a bank. He deposits Rs. 2,500 per month for 2 years. If he gets Rs. 66,250 at the time of maturity, find
1) The interest paid by the bank
2) The rate of interest
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A page from the passbook of a savings book account in a particular year is given below:
| Date | Particulars | Debit (In Rs) | Credit (In Rs) | Balance (In Rs) |
| Jan 3 | By cash | 5,000.00 | 5,000.00 | |
| Feb 13 | To self | 500.00 | ||
| March 24 | By cheque | 2,000.00 | ||
| March 31 | By Interest | |||
| May 20 | By cash | 800.00 | ||
| July 7 | To Cheque | 1,400.00 | ||
| July 18 | By cash | 1,600.00 | ||
| Sept 15 | To Cheque | 3,200.00 | ||
| Sept 26 | By Cheque | 2,350.00 |
If the interest is calculated at 6% P.a. and is compounded at the end of march and September at every year, find the interest earned up to 31st march and then after completing all the entries, find the amount that the account holder would have received had he closed the account on 20th October the same year.
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| Date | Particulars | Withdrawals (Rs) | Deposits (Rs) | Balance (Rs) |
| May 1 | B/F | 3,200.00 | ||
| May 6 | By Cheque | 500.00 | 3,700.00 | |
| May 17 | By Cheque | 800.00 | 4,500.00 | |
| June 4 | By Cash | 1,300.00 | 5,800.00 | |
| June 9 | To Cheque | 1,650.00 | 4,150.00 |
Calculate the rate of interest per annum if the total interest earned for the months of May and June is Rs. 39.25`
Mrs. N. Batra has a savings bank account with the Punjab National bank. She had the following transactions (from 1st January, 2007 to 31st December, 2007) with the bank:
(i) 01-01-2007; B/F Rs. 8,764/-
(ii) 13-03-2007; deposited Rs. 6,482
(iii) 22-06-2007; withdrew Rs. 4,369
(iv) 09-08-2007; withdrew Rs. 1,333
(v) 24-11-2007; Deposited Rs. 2,158
Calculate the interest the accrured upto 31st December, 2007: if the rate of interest is 5% compounded yearly and the principle for every month is taken as the nearest multiple of Rs.10.
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Mrs. Chhabra deposits Rs 500 per month in a recurring deposit account for 4 years at a simple interest rate of 6% pa.
(a) Find the maturity value of deposit.
(b) Find the total interest she will earn after 2 years
Mrs Khandelkar invests Rs 900 every month in a recurring deposit account for a period of 3 years at a simple interest rate of 8% pa
(a) Find the total interest she will earn at the end of the period.
(b) Find the maturity value of her deposits.
The entries in the passbook of a Saving Bank Account holder are as follows:
| Date | Particulars | Withdrawals(₹) | Deposits(₹) | Balance(₹) |
| Feb. 12, 1986 | By cash | - | 2,000·00 | 2,000·00 |
| March 10 | By cash | - | 1,100·00 | 3,100·00 |
| April 20 | To cheque no. 231 | 800·00 | - | 2,300·00 |
| April 25 | By cash | - | 700·00 | 3,000·00 |
| May 11 | To cheque no. 232 | 700·00 | - | 2,300·00 |
| July 2 | By cash | - | 400·00 | 2,700·00 |
| July 8 | By cash | - | 500·00 | 3,200·00 |
| Aug. 10 | By cash | - | 600·00 | 3,800·00 |
| Aug. 28 | To cheque no. 233 | 200·00 | - | 3,600·00 |
Rate of interest is 5% per annum. Calculate the interest due if the account is closed on:
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(ii) October 1, 1986.
Given the following details, calculate the simple interest at the rate of 6% per annum up to June, 30:
| Date | Debit (in ₹) | Credit (in ₹) | Balance (in ₹) |
| January 1 | - | 24,000·00 | 24,000·00 |
| January 20 | 5,000·00 | - | 19,000·00 |
| January 29 | - | 10,000·00 | 29,000·00 |
| March 15 | - | 8,000·00 | 37,000·00 |
| April 3 | - | 7,653·00 | 44,653·00 |
| May 6 | 3,040·00 | - | 41,613·00 |
| May 8 | - | 5,087·00 | 46,700·00 |
A certain money is deposited every month for 8 months in a recurring deposit account at 12% p.a. simple interest. If the interest at the time of maturity is ₹ 36, the monthly instalment is ______.
