QQuestion
Salman deposits ₹1000 every month in a recurring deposit account for 2 years. If he receives ₹26,000 on maturity, find:
(a) the total interest Salman earns
(b) the rate of interest.
✓Answer
(a) Monthly deposit = ₹1000
Time = 2 years = 24 months
Total deposit = ₹1000 × 24
Total deposit = ₹24,000
Total interest = Maturity value − Total deposit
Total interest = ₹26,000 − ₹24,000
Therefore, total interest = ₹2000.
(b) Let the rate of interest be r% per annum.
Interest = \frac{P\times n(n+1)}{2\times12}\times\frac{r}{100}
Substituting P = 1000, n = 24 and interest = 2000:
⇒ 2000 = \frac{1000\times24\times25}{2\times12}\times\frac{r}{100}
⇒ 2000 = 1000\times25\times\frac{r}{100}
⇒ 2000 = 250r
⇒ r = \frac{2000}{250} = 8
Therefore, the rate of interest is 8% per annum.
Related Questions
More ICSE Easy level questions
Naveen deposits ₹800 every month in a recurring deposit account for 6 months. If he receives ₹4884 at the time of maturity, then the interest he earns is: (a) ₹84 (b) ₹42 (c) ₹24 (d) ₹284
Mr Anuj deposits ₹500 per month for 18 months in a recurring deposit account at a certain rate. If he earns ₹570 as interest at the time of maturity, then his matured amount is: (a) ₹(500 × 18 + 570) (b) ₹(500 × 19 + 570) (c) ₹(500 × 18 × 19 + 570) (d) ₹(500 × 9 × 19 + 570)
Mrs Rao deposited ₹250 per month in a recurring deposit account for 3 years. She received ₹10,110 at maturity. Find: (a) the rate of interest. (b) how much more interest she would receive if she deposited ₹50 more per month at the same rate and for the same time.
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 the total time for which the account was held.
Solve the following quadratic equation: x2 + 4x − 8 = 0. Give your answer correct to one decimal place. Use mathematical tables if necessary.
Find the value of ‘a’ if x − a is a factor of the polynomial 3x3 + x2 − ax − 81.
Prove the following identity: (sin2 θ − 1)(tan2 θ + 1) + 1 = 0
Factorize completely using the Factor Theorem: 2x³ − x² − 13x − 6.
Using ruler and compass, construct a triangle ABC in which AB = 6 cm, ∠BAC = 120° and AC = 5 cm. Construct a circle passing through A, B and C. Measure and write down the radius of the circle.
A and B are two points on the x-axis and y-axis respectively, as shown in the figure. (a) Write down the coordinates of A and B. (b) P is a point on AB such that AP : PB = 3 : 1. Using the section formula, find the coordinates of P. (c) Find the equation of a line passing through P and perpendicular to AB.
In the given figure, O is the centre of the circle. PQ is a tangent to the circle at T. Chord AB produced meets the tangent at P. AB = 9 cm, BP = 16 cm, ∠PTB = 50° and ∠OBA = 45°. Find: (a) the length of PT (b) ∠BAT (c) ∠BOT (d) ∠ABT
In the given figure, O is the centre of the circle. CE is a tangent to the circle at A. If ∠ABD = 26°, find: (a) ∠BDA (b) ∠BAD (c) ∠CAD (d) ∠ODB