Question

Manish deposits Rs 400 every month in a recurring deposit account for 30 months. He got Rs 13240 after maturity period. The rate of interest p.a. will be____________$\%$

• A. 9
• B. 6
• C. 4
• D. 8

Answer 1

The correct option is D

8

Given P = Rs 400

n = 30 months

Let Rate be r $\%$ p.a.

Amount deposited = $P\times n$ = 400 $\times$ 30 = Rs.12,000

Interest = $\frac{p\times n(n+1)}{2\times 12}\left(\frac{r}{100}\right)$ = $\frac{400\times 30\times 31}{2\times 12}\times \left(\frac{r}{100}\right)$

= 155r

Maturity Value = Amount deposited + Interest

13240 = 12000 + 155r

155r = 1240

r = 8$\%$