Question

Malini Opens a recurring deposit account and deposits ₹ 600 per month for 5 years. The rate of interest is 8 %. Find the interest and maturity value she receives at the end of the maturity period

• A. i) ₹ 7320 ii) ₹ 43,320
• B. i) ₹ 7230 ii) ₹ 43,330
• C. i) ₹ 7520 ii) ₹ 45,320
• D. i) ₹ 8320 ii) ₹ 45,330

Answer 1

The correct option is A

i) ₹ 7320 ii) ₹ 43,320

Given that amount invested per month (P) = ₹ 600
Number of months (n) = 5 x 12 = 60 months
Rate of Interest (r) = 8 %

Total amount invested = P x n
= 600 x 60
= ₹ 36,000

i) Interest = P $\times$ $\frac{n\times (n+1)}{2\times 12}$ $\times$ $\frac{r}{100}$
= 600 $\times$ $\frac{60\times (60+1)}{2\times 12}$ $\times$ $\frac{8}{100}$
= ₹ 7320

ii) Maturity Amount = Amount Invested + Interest
= 36,000 + 7320
= ₹ 43,320