## Selina Concise Mathematics Class 10 ICSE Solutions Chapter 2 Banking (Recurring Deposit Accounts) Ex 2A

These Solutions are part of Selina Concise Mathematics Class 10 ICSE Solutions. Here we have given Selina Concise Mathematics Class 10 ICSE Solutions Chapter 2 Banking Ex 2A.

**Other Exercises**

- Selina Concise Mathematics Class 10 ICSE Solutions Chapter 2 Banking Ex 2A
- Selina Concise Mathematics Class 10 ICSE Solutions Chapter 2 Banking Ex 2B

**Question 1.**

**Manish opens a Recurring Deposit Account with the Bank of Rajasthan and deposits ₹ 600 per month for 20 months. Calculate the maturity value of this account, if the bank pays interest at the rate of 10% per annum.**

**Solution:**

Recurring Deposit per month = ₹ 600

Period (n) = 20 months

Rate of interest (r) = 10% p.a.

Total principal for 1 month

Maturity value = ₹ 600 x 20 + ₹ 1,050 = ₹ 12,000 + ₹ 1,050 = ₹ 13,050

**Question 2.**

**Mrs. Mathew opened a Recurring Deposit Account in a certain bank and deposited ₹ 640 per month for 4\(\frac { 1 }{ 2 }\) years. Find the maturity value of this account, if the bank pays interest at the rate of 12% per year.**

**Solution:**

Recurring deposit per month = ₹ 640

Period (n) = 4\(\frac { 1 }{ 2 }\) years = 54 months

Rate of interest (r) = 12%

Total principal for 1 month

Maturity value = ₹ 640 x 54 + ₹ 9,504 = ₹ 34,560 + ₹ 9,504 = ₹ 44,064

**Question 3.**

**Each of A and B opened a recurring deposit accounts in a bank. If A deposited ₹ 1,200 per month for 3 years and B deposited ₹ 1,500 per month for 2\(\frac { 1 }{ 2 }\) years; find, on maturity, who will it get more amount and by how much ? The rate of interest paid by the bank is 10% per annum.**

**Solution:**

A’s deposit per month (P) = ₹ 1200

Period = 3 years = 36 months

Total principal for one month

and maturity value = ₹ 1500 x 30 + Interest

= ₹ 45000 + 5812.50

= ₹ 50812.50

It is clear that B’s maturity value is greater Difference = ₹ 50812.50 – ₹ 49860 = ₹ 952.50

**Question 4.**

**Ashish deposits a certain sum of money every month in a Recurring Deposit Account for a period of 12 months. If the bank pays interest at the rate of 11% p.a. and Ashish gets ₹ 12,715 as the maturity value of this account, what sum of money did he pay every month ?**

**Solution:**

Let Recurring deposit per month = ₹ x

Period (n) = 12 months

Rate of interest (r) = 11%

Maturity value = ₹ 12,715 ………. (i)

Total principal for one month

Recurring deposit per month ₹ 1000 p.m.

**Question 5.**

**A man has a Recurring Deposit Account in a bank for 3\(\frac { 1 }{ 2 }\) years. If the rate of interest is 12% per annum and the man gets ₹ 10206 on maturity, find the value of monthly installments.**

**Solution:**

Let Recurring deposit per month = ₹ x

Period (n) = 3\(\frac { 1 }{ 2 }\) years = 42 months

Rate of interest (r) = 12% p.a.

Amount of maturity = ₹ 10206 ……… (i)

Amount of each installment = ₹ 200

**Question 6.**

**(i) Puneet has a Recurring Deposit Account in the Bank of Baroda and deposits ₹ 140 per month for 4 years If he gets ₹ 8,092 on maturity, find the rate of interest given by the bank.**

**(ii) 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. (2008)**

**Solution:**

(i) Recurring deposit per month = ₹ 140

Period (n) = 4 years = 48 months

Let Rate of interest (r) = r % p.a.

Amount of maturity = ₹ 8,092

Total principal for one month

**Question 7.**

**Amit deposited ₹ 150 per month in a bank for 8 months under the Recurring Deposits Scheme. What will be the maturity value of his deposits, if the rate of interest is 8% per annum and interest is calculated at the end of every month ? [I.C.S.E. 2001]**

**Solution:**

Amount of Recurring deposit = ₹ 150

Period (n) = 8 months

Rate of interest (r) = 8% p.a.

Total principal for one month

Amount of maturity value = ₹ 150 x 8 + ₹ 36 = ₹ 1,200 + ₹ 36 = ₹ 1,236

**Question 8.**

**Mrs. Geeta deposited ₹ 350 per month in a bank for 1 year and 3 months under the Recurring Deposit Scheme. If the maturity value of her deposits is ₹ 5,565; find the rate of interest per annum.**

**Solution:**

Amount of recurring deposit per month = ₹ 350

Period (n) = 1 year 3 months = 15 months

Let rate of interest = r % p.a.

Amount of maturity = ₹ 5565

Amount of interest = ₹ 5,565 – ₹ 350 x 15 = ₹ 5,565 – 5,250 = ₹ 315 ….(i)

Now, total principal for one month

**Question 9.**

**A recurring deposit account of ₹ 1,200 per month has a maturity value of ₹ 12,440. If the rate of interest is 8% and the interest is calculated at the end of every month; find the time (in months) of this Recurring Deposit Account.**

**Solution:**

Amount of recurring deposit per month = ₹ 1,200

Rate of interest (r) = 8% p.a.

Let period = n months

Amount of maturity = ₹ 12,440

Amount of interest = ₹ 12440 – ₹ 1200 x n ….(i)

Total principal for one month

from (i) and (ii), we get,

4n (n + 1) = 12440 – 1200n

⇒ 4n² + 4n = 12440 – 1200n

⇒ 4n² + 1204n – 12440 = 0

Dividing by 4,

⇒ n² + 301n – 3110 = 0

⇒ n² + 311n – 10n – 3110 = 0

⇒ n (n + 311) – 10 (n + 311) = 0

⇒ (n + 311) (n – 10) = 0

Given n + 311 = 0, then n = – 311 Which is not possible,

or n – 10 = 0, then n = 10

Period = 10 months.

**Question 10.**

**Mr. Gulati has a Recurring Deposit Account of ₹ 300 per month. If the rate of interest is 12% and the maturity value of this account is ₹ 8,100; find the time (in years) of this Recurring Deposit Account.**

**Solution:**

Amount of recurring deposit per month = ₹ 300

Let Period = n months

Rate of interest (r) = 12% p.a.

Amount of maturity = ₹ 8,100

Interest = 8,100 – 300 x n ……. (i)

Total principal for 1 month

⇒ 3n (n + 1) = 16,200 – 600 n

⇒ 3n² + 3n = 16,200 – 600 n

⇒ 3n² + 603n – 16,200 = 0

Dividing by 3, we get,

⇒ n² + 201n – 5,400 = 0

⇒ n² + 225n – 24n – 5,400 = 0

⇒ n(n + 225) – 24 (n + 225) = 0

⇒ (n + 225) (n – 24) = 0

Either n + 225 = 0, then n = – 225 Which is not possible

or n – 24 = 0, then n = 24

Period = 24 months or 2 years.

**Question 11.**

**Mr. Gupta opened a recurring deposit account in a bank. He deposited ₹ 2,500 per month for two years. At the time of maturity he got ₹ 67,500. Find :**

**(i) the total interest earned by Mr. Gupta.**

**(ii) the rate of interest per annum. (2010)**

**Solution:**

(i) Total amount deposited by Mr. Gupta in 24 months = ₹ 2500 x 24 = ₹ 60,000

Maturity amount = ₹ 67,500

Total interest earned by Mr. Gupta = ₹ 67,500 – ₹ 60,000 = ₹ 7,500

(ii) Total principal for 1 month

Hope given Selina Concise Mathematics Class 10 ICSE Solutions Chapter 2 Banking Ex 2A are helpful to complete your math homework.

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