Final answer:
The question requires calculating the time for which Savita held a recurring deposit account, given the maturity value, monthly deposit amount, and interest rate. Without a specific formula for recurring deposit interest from the Bank of India, we can estimate using an average balance method with simplified assumptions for illustration purposes.
Step-by-step explanation:
The question asks us to determine the time in years Savita had a recurring deposit account with the bank at a 10% interest rate, given that she deposited Rs. 600 per month and had a maturity value of Rs. 24930.
First, we need to understand that with recurring deposits, the interest is not compounded on the entire amount from day one since each installment is added every month, and thus, interest is compounded differently for each installment.
The interest in such cases is usually calculated using the formula for the sum of a series of investments. However, to find the time, without a direct formula, we would typically need additional information such as the exact method the bank uses to calculate the interest on the recurring deposits.
Since we don't have the explicit formula or method used by the Bank of India, let's make a simplified assumption to illustrate the concept. If we have the total maturity amount (Rs. 24930), the monthly deposit (Rs. 600), and the interest rate (10%), we can estimate the duration using an average balance method and considering the rate as simple interest for the sake of this illustration.
Maturity Value = Principal + Interest
The principal is computed as the monthly deposit times the number of months, and the interest is approximated as the interest rate times the average balance over the time period (as an average of the first and last month's balance).