Q) Mr. Sam has a recurring deposit account and deposits ₹ 600 per month for 2 years. If he gets ₹ 15,600 at the time of maturity, find the rate of interest earned by him.

ICSE Specimen Question Paper – 2026

Ans:

Step 1: Total Interest earned:

Given that Principal amount is ₹ 600 per month and time period is 2 years or 24 months.

∴ Total investment = n x P = 24 x ₹ 600 = ₹ 14,400

Also given, Maturity value of RD account = ₹ 15,600

Now, we know that, Maturity value of RD account = Total investment + Interest Amount

∴ Interest Amount = Total investment – Maturity value of RD account

∴ Interest Amount = ₹ 15,600 – ₹ 14,400 = ₹ 1,200

Step 2: Rate of Interest:

Let’s consider the rate of Interest be R%

We know that Interest Amount is given by,

I = P ×

∴ ₹ 1,200 = ₹ 600 ×

∴ 1,200 = 600 x (12 x 25)

∴ 1,200 = 6 x 25 x R

∴ R = = 8

Therefore, the rate of interest is 8% per annum

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