Name: Different Types of Bank Accounts
Uploaded: 2019-07-19
Duration: 10 min 25 s
Description: This video explains the different types of bank accounts and the rates of interest offered. This will help us choose the kind of bank account that will be mo...

Question

Priyanka has a recurring deposit account of $₹ 1000$ per month at $10 %$ per annum. If she gets $₹ 5550$ as interest at the time of maturity, find the total time for which the account was held.

Accepted Answer

Let the total time period $n = x$ months

Given that,

$p =$ Monthly instalment $= ₹ 1000$

$r =$ Rate percent per annum $= 10 %$

$N =$ Period of recurring deposit $= \frac{x}{2 \times 12} (x + 1)$ $= \frac{x (x + 1)}{24}$

Interest at the time of maturity $= ₹ 5550$

$∵$ Interest $= \frac{p \times N \times r}{100}$

$\Rightarrow ₹ 5550 = \frac{₹ 1000 \times x (x + 1) \times 10}{100 \times 24}$

$\Rightarrow 5550 \times 100 \times 24 = 1000 \times x (x + 1) \times 10$

$\Rightarrow 133200 = 100 (x^{2} + x)$

$\Rightarrow 1332 = x^{2} + x$

$\Rightarrow x^{2} + x - 1332 = 0$

$\Rightarrow x^{2} + 37 x - 36 x - 1332 = 0$

$\Rightarrow x (x + 37) - 36 (x + 37) = 0$

$\Rightarrow (x - 36) (x + 37) = 0$

$∴ x = 36$ and $x = - 37$ (Time is not in negative values)

Hence, the total time period $= 36$ months $= 3$ years

Priyanka has a recurring deposit account of $₹ 1000$ per month at $10 %$ per annum. If she gets $₹ 5550$ as interest at the time of maturity, find the total time for which the account was held.

Important Questions on Banking

Learn and Prepare for any exam you want !

Priyanka has a recurring deposit account of ₹1000 per month at 10% per annum. If she gets ₹5550 as interest at the time of maturity, find the total time for which the account was held.

Important Questions on Banking

Learn and Prepare for any exam you want !

Priyanka has a recurring deposit account of $₹ 1000$ per month at $10 %$ per annum. If she gets $₹ 5550$ as interest at the time of maturity, find the total time for which the account was held.