NumericalModerate2 marks
11(c)
Mr. Richard has a recurring deposit account in a bank for 3 years at 7.5% p. a. simple interest. If he gets Rs. 8325 as interest at the time of maturity, find
The monthly deposit
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
Monthly deposit = ₹P. n = 36 months. r = 7.5% p.a. Interest = ₹8,325.
8325 = P × [36×37/2] × 7.5/1200.
P = ₹2,000.
Answer: Monthly deposit = ₹2,000.
Explanation
Substitute the term, rate and total interest in the recurring-deposit interest formula.
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