Chapter 2.

Banking
Sums based on P and MV :
1. 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?
2. A man has a Recurring Deposit Account in a bank for 3½ years. If the rate of interest is 12% per
annum and the man gets 10,206 on maturity, find the value of monthly instalments.
3. Mr. Britto deposits a certain sum of money each month in a Recurring Deposit Account of a bank. If
the rate of interest is of 8% per annum and Mr. Britto gets 8,088 from the bank after 3 years, find the
value of his monthly instalment.
4. Mr. Bajaj needs 30,000 after 2 years. What least money (in multiple of 5) must he deposit every
month in a recurring deposit account to get required money at the end of 2yrs ,the rate of interest
being 8% p.a. ?
5. Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets
1,200 as interest at the time of maturity, find: (i) the monthly instalment
(ii) the amount of maturity.

Sums Based on Rate of interest and Amount of Interest :

1. David opened a Recurring Deposit Account in a bank and deposited 300 per month for two years. If
he received 7,725 at the time of maturity, find the rate of interest per year.
2. 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.
3. 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.
4. Gopal has a cumulative deposit account and deposits 900 per month for a period of 4 years. If he gets
52,020 at the time of maturity, find the rate of interest.
5. Shilpa has a 4 year recurring deposit account in Bank of Maharashtra and deposits ₹ 800 per month. If she
gets Rs. 48200 at the time of maturity, find
(i) the rate of simple interest, (ii) the total interest earned by Shilpa

Sums based on period/time :

1. A recurring deposit account of Rs. 1,200 per month has a maturity value of Rs. 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.
2. 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.
3. The maturity value of a R.D. Account is 3,320. If the monthly instalment is₹400 and the rate of
interest is 10%; find the time (period) of this R.D. Account.
4. Ms. Mansi opened a cumulative deposit account of monthly installment of Rs. 1200 at 9% per
annum simple interest. She earned a total interest of Rs. 5994. How many installments did she pay?
5. Samita has a recurring deposit account in a bank of Rs. 2000 per month at the rate of 10% p.a. If she
gets Rs. 83100 at the time of maturity, find the total time for which the account was held.

Multiple Choice Type:

Choose the correct answer from the options given below.
1. Rs. 900 is deposited every month in a recurring deposit account at 10% rate of interest, the interest
earned in 8 months is:
a) 270 b) 27 c) 2,700 d) 210
2. A man gets 1,404 as interest at the end of one year. If the rate of interest is 12% per annum in R.D.
account, the monthly instalment is Rs. :
a) 1200 b) 2400 c) 1800 d) 3600
3. Manish opened an R.D. account in a bank and deposited 1,000 per month at the interest of 10% per
annum and for 2 years. The total money deposited by him is Rs. :
a) 12000 b) 24000 c) 2400 d) 4000

4. 800 per month is deposited in an R.D. account for one and half years. If the depositor gets 2,280 as
interest at the time of maturity, the rate of interest is:
a) 20% b) 10% c) 15% d) 12%
5. In a recurring deposit account, John deposits 500 per month for 24 months. If the interest he earns is
one-tenth of his total deposit, the rate of interest is:
a) 4.8% b) 9.6% c) 7.2% d) 3.2%
6. In a recurring deposit account, Mohit deposited ₹ 5,000 per month for one year and at maturity gets
67,500; the total interest earned is Rs. :
a) 60000 b) 52500 c) 67500 d) 7500.
7. A certain money is deposited in a recurring deposit account for 15 months. If the interest earned for this
deposit is one-fifth of the monthly instalment; the rate of interest is:
a) 6% b) 10% c) 2% d) 4%

Assertion and Reasoning Type :

a) A is true, R is false.
b) A is false, R is true.
c) Both A and R are true and R is the correct reason for A.
d) Both A and R are true and R is the incorrect reason for A.
1. In a cumulative deposit account, a man deposited ₹ 5,000 per month for 6 months and received
33,000 on maturity.
Assertion (A): The interest received by him is Rs. 3,000.
Reason (R) : Interest received in a cumulative deposit account = Maturity value Total sum deposited.
2. Mohit deposited Rs. 2,000 per month in a recurring deposit account on which the bank pays an
interest of 10% per month.
Assertion (A): The total sum deposited in 1 1-years = 36,000 2
Reason (R): Maturity value of this account = 36,000+ Interest on it
3. Mr Sharma deposited 100 per month in a cumulative deposit account for 1 year at the rate of 6% p.a.
Statement (1): Qualifying sum of his whole deposit = 7,800.
Statement (2) Let a sum P be deposited every month in a bank for n months. If the rate of interest be
Px n(n+1 ) x r
r% p.a., then interest on the whole deposit (I) =
2x12x100
a) Both the statements are true
b) Both the statements are false.
c) Statement 1 is true, and statement 2 is false.
d) Statement 1 is false, and statement 2 is true.

Previous years asked questions

1. Naveen deposits Rs. 800 every month in a recurring deposit account for 6 months. If he
receives Rs. 4884 at the time of maturity, then the interest he earns is: (MAIN 2023)
(a) Rs. 84 (b) Rs. 42 (c) Rs. 24 (d) Rs. 284
2. Manish deposited Rs. 1500 per month in a recurring deposit account for 2 years. What is the
amount payable to him on maturity if the rate of interest is 8% per annum. (COMP 2023)
(a) Rs. 3,900 (b) Rs. 4,200 (c) Rs. 4,500 (d) Rs. 5,000
3. Mohit opened a recurring deposit account in a bank for 2 years. He deposit Rs. 1,000 every
month and receives Rs. 25,500 on maturity. The interest he earned in 2 years is:
(Main 2021 Sem I)
(a) Rs. 13,500 (b) Rs. 3,000 (c) Rs. 24,000 (d) Rs. 1,500
4. A man deposit Rs. 500 per month for 6 months and received Rs. 3,300 as the maturity value.
The interest received by him is : (Main 2021 Sem I)
(a) Rs. 1,950 (b) Rs. 300 (c) Rs. 2,800 (d) None of these

5. Mr. Sonu has a recurring deposit account and deposits ` 750 per month for 2 yr. If he gets
Rs.19125 at the time of maturity, find the rate of interest. (MAIN 2020)
6. Mr Rajinder has a recurring deposit in a bank for 3 years at 9% p.a. simple interest. if he gets
Rs. 3996 as interest at the time of maturity, find: (COMP 2020)
(i) the monthly installment.
(ii) the amount of maturity.
7. 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. (MAIN 2019)
8. Swami deposited ` 400 at the beginning of every month in a recurring deposit a nd received
Rs.16398 at the end of 3 years. Find the rate of interest given by the bank. (COMP 2019)
9. Priyanka has a recurring deposit account of `1000 per month at 10% per annum. If she gets
Rs.5550 as interest at the time of maturity, find the total time for which the account was held.
(MAIN 2018)
1
10. Sonia has a Recurring Deposit Account in a bank and deposited Rs. 600 per month for 2
2
year. If the rate of intersect was 10% per annum, find the maturity value of this account.
(MAIN 2018)

Higher Order Thinking HOTs Sums :

1. Rs. P is deposited for n number of months in a recurring deposit account which pays
interest at the rate of r % per annum. The nature and time of interest calculated is:
(a) compound interest for n number of months.
(b) simple interest for n number of months.
(c) compound interest for one month.
(d) simple interest for one month
2. Anwesha intended to open a Recurring Deposit account of ₹1000 per month for 1
year in a Bank, paying a 5% per annum rate of simple interest. The bank reduced
the rate to 4% per annum. How much must Anwesha deposit monthly for 1 year so
that her interest remains the same?
(a) Rs. 12325 (b) Rs. 1250 (c) Rs. 1200 (d) Rs. 1000
3. A man opened a recurring deposit account in a branch of PNB. The man deposits
certain amount of money per month such that after 2 years , the interest accumulated
is equal to his monthly deposits. Find the rate of interest per annum that the bank
was paying for the recurring deposit account.
4. Amit deposited Rs. 600 per month in a recurring deposit account. The bank pays a
simple interest of 12% p.a. Calculate the:
(a) number of monthly instalments Amit deposits to get a maturity amount of Rs. 11826?
(b) total interest paid by the bank.
(c) total amount deposited by him.
5. Mrs. Chopra deposits Rs. 1600 per month in a RD account at 9% per annum simple interest. If
she gets Rs. 65592 at the time of maturity, then find the total time for which the account was
held. (Solving of Q.E. with formula method)