Question

If ₹ 200 per month deposited in a bank under Recurring Deposit Scheme with interest rate 10% per annum then the maturity value after 3 years is

• A. ₹ 1110
• B. ₹ 7200
• C. ₹ 8310

Answer 1

The correct option is C ₹ 8310

Given, amount invested per month is ₹ 200 i.e P = ₹200
Number of month (n) = 36 and rate of interest (r) = 10%
$\because$ Maturity value of Reccuring deposit = Total Sum deposited + Interest on it

Sum deposited = $200\times 36$ = ₹ 7200

Interest = $P\times \frac{n(n+1)}{2}\times \frac{1}{12}\times \frac{r}{100}$
$=200\times \frac{36\times (36+1)}{2}\times \frac{1}{12}\times \frac{10}{100}$
$=200\times \frac{36\times 37\times 10}{2\times 100\times 12}=1110$

Maturity Value = 7200 + 1110 = ₹ 8310