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Question

Manish opens a Recurring Deposit Account with the Bank of Rajasthan and deposits ₹600 per month for 20 months. Calculate the maturity value of this account, if the bank pays interest at the rate of 10% per annum.

A

₹6000

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B

₹1050

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C

₹13050

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D

₹12000

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Solution

The correct option is C ₹13050 Instalment per month(P) = ₹600 Number of months(n) = 20 Total Amount Deposited = 600 x 20 = ₹12000 Rate of interest(r)= 10%p.a. I=P×n(n+1)2×12×r100 =600×20(20+1)2×12×10100 =600×42024×10100=₹ 1050 The amount that Manish will get at the time of maturity Maturity Amount = Total Amount Deposited + Interest =₹12,000+ ₹1,050 = ₹13,050 The Maturity Amount = ₹13,050

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