1.

Mr.Jacob has a two years recurring deposit account in State Bank of Indiaand deposits Rs.1500 per month. If he receives Rs.37875 at the time ofmaturity, find the rate of interest

Answer»

principal (P)= Rs. 1500time= 2 years (n)=2x12= 24months let rate be= r%

Amount received at maturity = Total money deposited + Simple Interest 37875 = (Pxn) + [{Pxn(n+1)} / (2x12)]xr/10037875 = (1500x24) + [{1500x24x25} / 24]x r/100 37875 = 36000+(900000 / 24)xr/10037875-36000 = 37500xr/100 (1875x100)/37500 = r 5 = r r=5%;



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