Question

Amit deposited ₹150 per month in a bank for 8 months under the Recurring Deposit Scheme. What will be the maturity value of his deposits, if the rate of interest is 8% per annum and interest is calculated at the end of every month?

• A. ₹ 1,200
• B. ₹ 1,236
• C. ₹ 1538
• D. ₹ 1200

Answer 1

The correct option is B

₹ 1,236

Installment per month(P) = ₹ 150

Number of months(n) = 8

Rate of interest(r)= 8%p.a.

$I=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$=150\times \frac{8(8+1)}{2\times 12}\times \frac{8}{100}$
$=150\times \frac{72}{24}\times \frac{8}{100}=₹36$

The amount that Amit will get at the time of maturity

=₹ (150 x 8)+ Rs36

=₹ 1,200+ Rs36

= ₹ 1,236