NumericalModerate3 marks
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.
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
Time = 12 months = 1 year.
Explanation
R.D. interest formula: 1040 = 2000·n(n+1)/(2·12)·8/100. Solving gives n=12.
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