Mr. Anil has a recurring deposit account. He deposits a certain amount of money per month for 2 years. If he received an interest whose value is the double of the deposit made per month, then find the rate of interest.
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Let deposit per month be P.
Given,
Time = 2 years = 24 months
Interest = 2 × Principle per month
By formula,
I = $\frac{P \times n(n + 1)}{2 \times 12} \times \frac{R}{100}$
Substituting values we get :
$$\begin{aligned}\Rightarrow 2P = \frac{P \times 24(24 + 1)}{24} \times \frac{R}{100} \\[1em] \Rightarrow 2P = \frac{P \times 25 \times R}{100} \\[1em] \Rightarrow R = \frac{2P \times 100}{P \times 25} \\[1em] \Rightarrow R = \frac{200}{25} \\[1em] \Rightarrow R = 8%.\end{aligned}$$
Hence, the rate of interest received by Mr. Anil = 8% .