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. Rs 800
• B. Rs 1236
• C. Rs 2326
• D. RS 3248

Answer 1

The correct option is B

Rs 1236

Interest on his deposits
$=\frac{n\times (n+1)}{2}\times \frac{\text{Installment}\times \text{Rate}}{100\times 12}$
$=\frac{8\times (8+1)}{2}\times \frac{150\times 8}{100\times 12}$
$=\frac{8\times 9\times 150\times 8}{2\times 100\times 12}=36$
Maturity Value = Rs $150\times 8$ + Rs $936$

$\Rightarrow 1200+36=1236$ Rs.