NumericalModerate3 marks
Priyanka has a recurring deposit account of ₹1000 per month at 10% per annum. If she gets ₹5550 as interest at the time of maturity, find the total time for which the account was held.
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
P=₹1000, r=10% p.a., I=₹5550. Let term = n months.
5550 = 1000 × n(n+1)/2 × 10/1200.
n(n+1)=1332 = 36×37.
n=36 months = 3 years.
Answer: 3 years.
Explanation
Substitute in the recurring-deposit interest formula and solve n(n+1)=1332.
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