NumericalModerate2 marks
8(i)
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 the:
interest earned by Vinay.
Topic: Banking / interest
Previous-year question practice database
Answer
Exam answer
Monthly deposit P = ₹300. n = 24 months. r = 8% p.a.
R.D. interest: I = P × n(n+1)/2 × r/(12×100)
= 300 × [24×25/2] × 8/1200 = ₹600.
Answer: ₹600.
Explanation
Substitute the monthly deposit, term and annual rate in the recurring-deposit interest formula.
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