Question

Abhishek opened a Recurring deposit account in a bank and deposited Rs. 800 per month for 1$\frac{1}{2}$ years. If he received Rs. 15,084 at the time of maturity, then find the rate of interest per annum.

• A. 6%
• B. 8%
• C. 10%
• D. 12%

Answer 1

The correct option is A

6%

P = 800 , n = 1.5 years = 18 months, Maturity Value = Rs. 15,084
Total amount depsoited = 800 $\times$ 18 = Rs. 14400
Interest =$\frac{800\times 18\times (18+1)}{2\times 12}\times \frac{r}{100}[\because I=\frac{P\times n(n+1)}{2\times 12}\times \frac{r}{100}]$

I = $\frac{800\times 18\times \left(19\right)}{24}\times \frac{r}{100}$
I = 114 r

Total Amount Deposited = P x (n) = 800 x 18 = 14400
Maturity value = Total amount deposited + Interest
15084 = 14400 + 114r
114 r = 684
r = 6%