Mr. Gupta opened a recurring deposit account in a bank. He deposited ₹ 2500 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.
(iii) how much more interest will Mr. Gupta get, if he deposits ₹ 100 more per month at the same rate and for the same time ?

Question

Mr. Gupta opened a recurring deposit account in a bank. He deposited ₹ 2500 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.
(iii) how much more interest will Mr. Gupta get, if he deposits ₹ 100 more per month at the same rate and for the same time ?

KnowledgeBoat · Accepted Answer

Sum deposited = ₹ 2500 × 24 = ₹ 60000. (i) Interest = Maturity value - Sum deposited = ₹ 67500 - ₹ 60000 = ₹ 7500. Hence, the total interest earned ₹ 7500. (ii) Let rate of interest be x%. Given, P = ₹ 2500, n = (2 × 12) = 24 months and r = x% I = Substituting values we get : As, Interest = ₹ 7500 ⇒ 625x = 7500 ⇒ x = 12. Hence, the rate of interest is 12%. (iii) New monthly deposit be ₹ 2500 + ₹ 100 = ₹ 2600. P = ₹ 2,600, n = (2 × 12) = 24 months and r = 12% I = Substituting values we get : Difference in interest earned = ₹ 7,800 - ₹ 7,500 = ₹ 300. Hence, Mr. Gupta will get ₹ 300 more as interest.

Mathematics

Banking

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