In a recurring deposit account for 2 years, the total amount deposited by a person is ₹ 9600. If the interest earned by him is one-twelfth of his total deposit, then find :
(a) the interest he earns
(b) his monthly deposit
(c) the rate of interest
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(a) Given,
Interest earned by man = One-twelfth of the total deposit
= $\frac{1}{12} \times 9600$
= ₹ 800.
Hence, the interest earned = ₹ 800.
(b) Given,
In a recurring deposit account for 2 years (or 24 months), the total amount deposited by a person is ₹ 9600.
Money deposited per month = $\frac{9600}{24}$ = ₹ 400.
Hence, monthly deposit = ₹ 400.
(c) By formula,
$\text{Interest} = \frac{P \times n \times (n + 1)}{2 \times 12} \times \frac{r}{100}$
Substituting values we get :
$$\begin{aligned}\Rightarrow 800 = \frac{400 \times 24 \times (24 + 1)}{2 \times 12} \times \frac{r}{100} \\[1em] \Rightarrow 800 = \frac{400 \times 24 \times 25}{24} \times \frac{r}{100} \\[1em] \Rightarrow 800 = 400 \times 25 \times \frac{r}{100} \\[1em] \Rightarrow 800 = 4 \times 25 \times r \\[1em] \Rightarrow 800 = 100 \times r \\[1em] \Rightarrow r = \frac{800}{100} \\[1em] \Rightarrow r = 8%.\end{aligned}$$
Hence, rate of interest = 8%.