Question

Divya has a recurring deposit in a bank at $5\%$ per annum simple interest. If she pay monthly installment of Rs. $2000$ for annually. Find her Maturity value.

• A. $6049.931$
• B. $6249.931$
• C. $6149.931$
• D. $6549.931$

Answer 1

The correct option is A $6049.931$

Using the formula,
$M=\frac{R\times \left[\right(1+i{)}^n-1]}{1-(1+i{)}^{\frac{-1}{3}}}$
R $=$ Monthly Installment $=2000$
i $=$ Rate of Interest $5\%$
n $=$ Number of Quarters $=1$
Substitute the values,
$M=\frac{2000\times \left[\right(1+5/400{)}^n-1]}{1-(1+5/400{)}^{\frac{-1}{3}}}$
$M=\frac{2000\times \frac{5}{400}}{1-(\frac{405}{400}{)}^{-1/3}}$
$M=6049.931$