Suresh has a recurring deposit account in a bank. He deposits ₹2000 per month and the bank pays interest at the rate of 8% per annum. If he gets ₹1040 as interest at the time of maturity, find in years total time for which the account was held.

Let time be n months.

By formula,

I = $P \times \dfrac{n(n + 1)}{2\times 12} \times \dfrac{r}{100}$

Substituting values we get :

$\Rightarrow 1040 = 2000 \times \dfrac{n(n + 1)}{24} \times \dfrac{8}{100} \\[1em] \Rightarrow 1040 = 2000 \times \dfrac{n(n + 1)}{300} \\[1em] \Rightarrow n(n + 1) = \dfrac{1040 \times 300}{2000} \\[1em] \Rightarrow n(n + 1) = 156 \\[1em] \Rightarrow n^2 + n - 156 = 0 \\[1em] \Rightarrow n^2 + 13n - 12n - 156 = 0 \\[1em] \Rightarrow n(n + 13) - 12(n + 13) = 0 \\[1em] \Rightarrow (n - 12)(n + 13) = 0 \\[1em] \Rightarrow n - 12 = 0 \text{ or } n + 13 = 0 \\[1em] \Rightarrow n = 12 \text{ or } n = -13.$

Since, no. of months cannot be negative.

∴ n = 12.

Hence, total time for which the account was held = 12 months.