Chapter 2 – Banking (30 marks) Time: 1hr 15 min
1. Mr Antao has a two-year deposit account in a bank where he deposits ₹ 900 per
month. Find the amount received by him at the time of maturity. If the rate of
interest is 8% p.a. (3 marks)
Solution:
Given: P = ₹ 900, n = 24 months, r = 8% p.a.
To find: A = ?
𝑛(𝑛+1) 𝑟
I = 𝑃𝑥 𝑥 100
2𝑥12
24 𝑥 25 8
= 900 x 𝑥 100
2𝑥12
= ₹ 1800
A = (Pxn) + I = 900x24 + 1800
A = ₹ 23400
∴The amount received by Mr. Antao at the time of maturity is ₹23400
2. Ravina deposits ₹ 600 per month in a recurring deposit scheme for 2 years. If she
receives ₹ 15, 450 at the time of maturity, calculate the rate of interest per annum.
(3 marks)
Solution:
Given: P = ₹600, n = 24 months, A = ₹15,450
To find: r = ?
𝑛(𝑛+1) 𝑟
I = 𝑃𝑥 𝑥 100
2𝑥12
24 𝑥 25 𝑟
= 600 x 𝑥 100 = 150r
2𝑥12
Maturity Value = (P x n) + SI
15,450 = 600 x 24 + 150r
150r = 1050
∴r = 7% p.a.
∴The rate of interest per annum is 7%
3. Zaheeda deposits a certain sum of money, every month in recurring deposit account
for 2 years. If she receives ₹ 37,875 at the time of maturity and the rate of interest
is 5%, find the monthly deposit. (3 marks)
Solution:
Given: n = 24 months, A = ₹ 37,875, r = 5% p.a.
To find = P = ?
𝑛(𝑛+1) 𝑟
I = 𝑃𝑥 𝑥 100
2𝑥12
24 𝑥 25 5 5
=Px 𝑥 100 = 4 𝑃
2𝑥12
Maturity Value = (P x n) + SI
5
37875 = 24P + 4 𝑃
101P = 151500
P = ₹ 1500
∴ The monthly deposit is ₹ 1500
4. Sonya deposits ₹ 300 per month at 8% p.a. In a bank and receives ₹ 4740 on
maturity of the account. Find out the total time for which the recurring deposit
account is held. (3 marks)
Solution:
𝑃𝑛(𝑛+1) 𝑟
MV = 𝑃𝑛 + 𝑥
2𝑥12 100
300𝑛(𝑛+1) 8
4740 = 300𝑛 + 𝑥 100
2𝑥12
300n + n(n+1) = 4740
n2 + 301n – 4740 = 0
On solving, we get
(n + 316) (n – 15) = 0
n ≠ 316. ∴ n = 15
∴ The recurring deposit account is held for a period of 15 months.
5. Mr. Motasha opens a recurring deposit account of ₹ 600 per month at 12% p.a. If
he paid ₹ 7668 as maturity amount, how many instalments does he need to pay
(3 marks)
Solution:
600𝑛(𝑛+1) 12
MV = 600𝑛 + 𝑥 100
2𝑥12
600𝑛(𝑛+1) 8
7668 = 600𝑛 + 𝑥 100
2𝑥12
600n + 3(n2+n) = 7668
n2 + 201n – 2556 = 0
On solving, we get
(n + 213) (n – 12) = 0
n ≠ 213. ∴ n = 12
∴ He needs to pay 12 instalments
6. Sonia had a recurring deposit account in a bank and deposited ₹ 600 per month for
1
22 years. If the rate of interest was 10% p.a. find the maturity value of this account.
(3 marks)
Solution:
𝑛(𝑛+1) 𝑟
I = 𝑃𝑥 𝑥 100
2𝑥12
30 𝑥 31 10
= 600 x x 100
24
= ₹ 2325
MV = Pn + SI
= (600 x 30) + 2325
= ₹ 20,325
∴ The maturity value of this account is ₹ 20,325
7. David opened a Recurring Deposit Account in a bank and deposited ₹ 300 per
month for two years. If he received ₹ 7725 at the time of maturity, find the rate of
interest per annum. (3 marks)
Solution:
P = ₹ 300, n = 24, r = ?
𝑛(𝑛+1) 𝑟
I = 𝑃𝑥 𝑥 100
2𝑥12
30 𝑥 31 𝑟
= 300 x x = 75r
24 100
MV = (300 x 24) + 75r
7725 = 7200 + 75r
Solving, we get r = 7%
∴ the rate of interest is 7% pa.
8. Rekha opened a recurring deposit account for 20 months. The rate of interest is 9%
per annum and Rekha receives ₹441 as interest at the time of maturity. Find the
amount Rekha deposited each month. (3 marks)
Solution:
Let the monthly installment i.e P = Rs. x.
Since n = 20 months and r = 9%
𝑛(𝑛+1) 𝑟
I=𝑃 𝑥 100
2𝑥12
𝑥 (20)(21) 9
= 𝑥 100 = ₹ 1.575x
2𝑥12
441 = 1.575x
∴ x = ₹ 280.
∴Rekha deposited ₹ 280 each month
9. Mr. R.K. Nair gets ₹ 6455 at the end of one year at the rate of 14% per annum in a
recurring deposit account. Find the monthly instalment. (3 marks)
Solution:
Let monthly instalment is Rs P. Here n = 12
𝑃𝑛(𝑛+1) 𝑟
MV = 𝑃𝑛 + 𝑥
2𝑥12 100
𝑃(12)(13) 14
6455 = 12𝑃 + 𝑥 100
2𝑥12
1291P = 645500
P = ₹ 500
The monthly instalment is ₹ 500
10. Samita has a recurring deposit account in a bank of ₹ 2000 per month at the rate of
10% p.a. If she gets ₹ 83100 at the time of maturity, find the total time for which
the account was held. (3 marks)
Solution:
Deposit per month = Rs 2000,
Rate of interest = 10%, Let period = n months
𝑛(𝑛+1) 𝑟
I=𝑃 𝑥 100
2𝑥12
𝑛(𝑛+1) 10
I = 2000 x 𝑥
2𝑥12 100
100𝑛(𝑛+1)
I= 12
MV = Pn + SI
100𝑛(𝑛+1)
83100 = 2000n + 12
n2 + 241n – 9972 = 0
Solving, we get,
(n+277) (n – 36) = 0
n ≠ -277
∴ n = 36
∴ The account was held for 36 months
