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Mathematics

Mr. Anil has a recurring deposit account. He deposits a certain amount of money per month for 2 years. If he received an interest whose value is the double of the deposit made per month, then find the rate of interest.

Banking

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Answer

Let deposit per month be P.

Given,

Time = 2 years = 24 months

Interest = 2 × Principle per month

By formula,

I = P×n(n+1)2×12×R100\dfrac{P \times n(n + 1)}{2 \times 12} \times \dfrac{R}{100}

Substituting values we get :

⇒2P=P×24(24+1)24×R100⇒2P=P×25×R100⇒R=2P×100P×25⇒R=20025⇒R=8%.\Rightarrow 2P = \dfrac{P \times 24(24 + 1)}{24} \times \dfrac{R}{100} \\[1em] \Rightarrow 2P = \dfrac{P \times 25 \times R}{100} \\[1em] \Rightarrow R = \dfrac{2P \times 100}{P \times 25} \\[1em] \Rightarrow R = \dfrac{200}{25} \\[1em] \Rightarrow R = 8\%.

Hence, the rate of interest received by Mr. Anil = 8% .

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