Question

Apurva deposited ₹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. ₹7670
• B. ₹8421
• C. ₹8400
• D. ₹5047

Answer 1

The correct option is B

₹8421

Given that recurring deposit per month = ₹200

Period = 36 months

Rate of interest = 11%

Money deposited = Monthly installment x No. of months = 200 $\times$ 36 = ₹7200

Interest = P $\times$ $\frac{n\times (n+1)}{2\times 12}$ $\times$ $\frac{r}{100}$

Interest = 200 $\times$ $\frac{36\times (36+1)}{2\times 12}$ $\times$ $\frac{11}{100}$

= ₹1221

Hence, Maturity Amount = Money Deposited + Interest = ₹ (7200 + 1221) = ₹8421.

$\therefore$ The amount Apurva gets on maturity = ₹8421