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ICSEClass XMathematicsBanking03 Mark2026 Easy

QQuestion

Rohit and Vinay both opened a recurring deposit account in a bank for 2 years at 8% simple interest. Vinay deposited ₹ 300 per month. On maturity, Rohit’s interest was ₹ 800 more than Vinay’s interest.

Find:

(a) interest earned by Vinay.

(b) sum deposited by Rohit every month.

Exam-ready answer • 03 Mark

Answer

(a) Time = 2 years = 24 months

Rate of interest = 8% per annum

Monthly deposit made by Vinay = ₹ 300

Interest = \frac{\mathrm{P}\times\mathrm{n}(\mathrm{n}+1)}{2}\times\frac{\mathrm{r}}{12\times100}

⇒ Interest = \frac{300\times24\times25}{2}\times\frac{8}{1200}

⇒ Interest = 300 × 300 × \frac{8}{1200}

⇒ Interest = ₹ 600

Therefore, interest earned by Vinay is ₹ 600.

(b) Interest earned by Rohit = ₹ 600 + ₹ 800 = ₹ 1400

Let Rohit deposit ₹ P per month.

⇒ 1400 = \frac{\mathrm{P}\times24\times25}{2}\times\frac{8}{1200}

⇒ 1400 = 2P

⇒ P = \frac{1400}{2} = ₹ 700

Therefore, Rohit deposits ₹ 700 per month.

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