1.

Mr. Brown deposits ₹1100 per month in a cumulativetime deposit account in a bank for 16 months. If atthe end of maturity he gets ₹19096, find the rate ofinterest if interest is calculated at the end of eachmonth.

Answer»

Monthly installment =Rs 1100.time taken to deposit monthly instalment=16 months.Maturity value=Rs 19096.So, total money deposited by Mr. Brown =Rs (1100*16)=Rs 17600Therefore interest paid by the bank to him =Rs (19096-17600)=Rs 1496Since M.V= Total money deposited*TIME.I =P* n*(n+1)*r/100/2*121496=1100*16*17*r/100/2*12=12 percent p.a.

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