Question

Amit deposits Rs 150 per month in a bank for 8 months under 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. Rs1200
• B. Rs1236
• C. Rs 1326
• D. RS 1248

Answer 1

The correct option is B Rs1236

$Interestonhisdeposits$
$=\frac{n\times (n+1)}{2}\times \frac{Installment\times Rate}{100\times 12}$
$=\frac{8\times (8+1)}{2}\times \frac{150\times 8}{100\times 12}$
$=\frac{8\times 9\times 150\times 8}{2\times 100\times 12}=36$
$MaturityValue=Rs150\times 8+36$
$=Rs1200+Rs36$
$=Rs1236$