Mr kirit shah has a recurring deposit account in a bank he deposits rupees 500 per month for a period - Maths - Commercial Mathematics

Question

Mr kirit shah has a recurring deposit account in a bank he deposits
rupees 500 per month for a period of four years if at the time of
maturity he gets rupees 28410, find the rate of interest

Josepaul Paulachan · Accepted Answer

Dear StudentAmount, A  = Rs 28410Principal, P = Rs 500,n  = 4 years  = 4×12 = 48 monthsTotal principal   =  500×48 = Rs 24000Interest, I  = Amount - Principal                  = 28410 - 24000                  = 4410Interest  = Rs 4410Let R be the rate of interest
N = n(n+1)2×12 = 48×492×12 = 98 yearTherefore we can say that this is equal to depositing Rs 500 for 98 yearsInterest, I = P×N×R100 = 4410P×N×R100 = 4410500×98×R100 = 4410R = 4410 ×100500×98    = 9Thus the rate of interest is 9 %Regards

Mr kirit shah has a recurring deposit account in a bank he deposits rupees 500 per month for a period of four years if at the time of maturity he gets rupees 28410, find the rate of interest.