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
• B. ₹1050
• C. ₹13050
• D. ₹12000

Answer 1

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.

$I=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$=600\times \frac{20(20+1)}{2\times 12}\times \frac{10}{100}$
$=600\times \frac{420}{24}\times \frac{10}{100}=₹1050$

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