Question

Amit deposited ₹ 150 per month in a bank for 8 months under the recurring deposit scheme. What will be the maturity value of the deposits , if the rate of interest is 8 % per annum and interest is calculate at the end of every month

• A. ₹ 1200
• B. ₹ 36
• C. ₹ 1428
• D. ₹ 1236

Answer 1

The correct option is D

₹ 1236

Given that amount invested per month (P) = ₹ 150
Number of months (n) = 8 months
Interest = $\frac{P\times N(n+1)}{2\times 12}\times \frac{r}{100}$36
= $\frac{150\times 8(8+1)}{2\times 12}\times \frac{8}{100}$
= ₹ 36

Total amount invested = P x n
= 150 x 8
= ₹ 1200
i) Maturity amount = Interest + Total amount invested
= 1200 + 36
= ₹ 1236