Ahmed has a recurring deposit account in a bank. He deposits Rs 2,500 per month for 2 years. If the gets Rs 66,250 at the time of maturity, find :
The interest paid by the bank

Answer

To find the interest paid by the bank on Ahmed's recurring deposit account, we can follow these steps:

### Step 1: Calculate the total amount deposited by Ahmed
Ahmed deposits Rs 2,500 per month for 2 years. First, we need to convert the time period into months.

\[ \text{Time period in months} = 2 \text{ years} \times 12 \text{ months/year} = 24 \text{ months} \]

Now, we can calculate the total amount deposited:

\[ \text{Total amount deposited} = \text{Monthly deposit} \times \text{Number of months} \]
\[ \text{Total amount deposited} = 2500 \times 24 = 60000 \text{ Rs} \]

### Step 2: Identify the maturity amount
The maturity amount received by Ahmed is given as Rs 66,250.

### Step 3: Calculate the interest earned
To find the interest paid by the bank, we subtract the total amount deposited from the maturity amount:

\[ \text{Interest} = \text{Maturity Amount} - \text{Total Amount Deposited} \]
\[ \text{Interest} = 66250 - 60000 = 6250 \text{ Rs} \]

### Final Answer
The interest paid by the bank is Rs 6,250.

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