Q) Mr Gupta opened a recurring deposit account in a bank. He deposited Rs. 2500 per month for two years. At the time of maturity, he got Rs. 67,500. Find:
(i) The total interest earned by Mr Gupta.
(ii) The rate of interest per annum

Ans:

(i) Total Interest earned

Let’s consider time period be ‘n’ months

Maturity value of RD account = 67500 (given)

Monthly instalment, P = 2500 (given)

and Number of months = 24 (given duration is 2 years)

∴ Total investment = n x P = 24 x 2,500 = 60,000

We know that, Maturity value of RD account = Total investment + Interest Amount

∴ 67500 = 60000 + Interest Amount

∴ Interest Amount = 67500 – 60000 = 7500 …… (ii)

Therefore, the Interest earned Mr . Gupta is Rs. 7,500

(ii) Rate of Interest:

Let’s consider the rate of Interest be R%

We know that Interest Amount is given by,

I = P ×

∴ 7500 = 2500 ×

∴ 7500 = 2500 x

∴ 7500 = 25 X 25 x R = 625 R

∴ R = = 12

Therefore, the rate of interest is 12% per annum

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