Question

If Mrs. Goswami deposits ₹ 1000 every month in a recurring deposit account for 3 years at 8% interest per annum then the matured value is .

• A. ₹ 36,000
• B. ₹ 4,440
• C. ₹ 40,440
• D. ₹ 40,000

Answer 1

The correct option is C ₹ 40,440

Given, amount invested per month is ₹ 1000 i.e P = 1000
Number of month (n) = 36 and rate of interest (r) = 8
$\because$ Maturity value of Reccuring deposit = Total Sum deposited + Interest
Sum deposited = $1000\times 36=₹36000$
Interest = $P\times \frac{n(n+1)}{2}\times \frac{1}{12}\times \frac{r}{100}$
= $1000\times \frac{36\times 37}{2}\times \frac{1}{12}\times \frac{8}{100}$
$=12\times 37\times 10=₹4440$
Amount after maturity = $36000+4440$
$=₹40,440$