Question

Apurva deposited Rs. 200 per month for 36 months in a bank’s recurring deposit account. The bank pays interest rate of 11% per annum. Calculate the amount that she will receive on the maturity.

• A. Rs. 7670
• B. Rs. 8421
• C. Rs. 8400
• D. Rs. 5047

Answer 1

The correct option is B

Rs. 8421

Given that recurring deposit per month = Rs 200

Period = 36 months

Rate of interest = 11%

Money deposited = Monthly installment x No. of months = 200 $\times$ 36 = Rs 7200---- (1)

Total principal fro 1 month = $200\times 36\times \frac{(36+1)}{2}$ = Rs. 1,33,200

Interest = $\frac{(133200\times 11\times 1)}{100\times 12}$ = Rs. 1221 ---- (2)

Hence, Maturity Amount = (1) + (2) = Rs (7200 + 1,221) = Rs 8421.

$\therefore$ The amount Apurva gets on maturity = Rs. 8421