Question

In a Recurring Deposit Account if ₹ 240 per month is deposited for 5 years and received ₹ 17,694 at time of maturity then rate of interset is .

• A. 9%
• B. 10%
• C. 6%
• D. 12%

Answer 1

The correct option is A 9%

Given, amount invested per month is ₹ 240 i.e P = ₹ 240
Number of month (n) = 60 and maturity value = ₹ 17694
Let $r$% be the rate of interest
$\because$ Maturity value of Reccuring deposit = Total Sum deposited + Interest on it
$\Rightarrow$ Maturity value= ($p\times n$) + $p\times \frac{\left(n\right)(n+1)}{2}\times \frac{1}{12}\times \frac{r}{100}$
= $240\times 60+(240\times \frac{60\times 61}{2\times 12}\times \frac{r}{100})$

$\Rightarrow 17694=14400+366r$

$\Rightarrow 366r=3294$

$\Rightarrow r=9$