Question

Anna deposited Rs 200 per month for 36 months in a bank's recurring deposit account. If the bank pays interest at the rate of 11% per annum , what is the amount she gets on maturity (i.e. at the end of 36 months)?

• A. $Rs7200$
• B. $Rs1221$
• C. $Rs3521$
• D. $Rs8421$

Answer 1

The correct option is D

$Rs8421$

Given: P = Rs 200, n = 36 months, r = 11%
Therefore, $I=Rs200\times 36\times \frac{36+1}{2\times 12}\times \frac{11}{100}=Rs1221$ $(I=P\times n\times \frac{n+1}{2\times 12}\times \frac{r}{100}$)
Total sum deposited = $P\times n=Rs200\times 36=Rs7200$
The sum that Anna will get at the time of maturity = $Rs(7200+1221)=Rs8421$