Question

Meena has a recurring deposit in a bank at $12\%$ per annum simple interest. If she pay monthly installment s Rs.$400$ for annually. Find her Maturity value.

• A. $1123.92$
• B. $1223.92$
• C. $1623.92$
• D. $1823.92$

Answer 1

The correct option is B $1223.92$

Using the formula,
$M=\frac{R\times \left[\right(1+i{)}^n-1]}{1-(1+i{)}^{\frac{-1}{3}}}$
$R=$ Monthly Installment $=400$
$i=$ Rate of Interest/ 400 $=\frac{12}{400}$
$n=$ Number of Quarters $=1$
Substitute the values,
$M=\frac{400\times \left[\right(1+12/400{)}^n-1]}{1-(1+12/400{)}^{\frac{-1}{3}}}$
$M=\frac{400\times \frac{12}{400}}{1-(\frac{412}{400}{)}^{-1/3}}$
$M=1223.92$