Question

Mohan deposits Rs 80 per month in a cumulative deposit scheme for six years. Find the amount payable to him on maturity, if the rate of interest is 6% per annum.
[4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Gviven : Rate = 6% p.a. and time = 6 years
$\therefore n=6\times 12=72months$
Equivalent principal for 1 month
$Rs[80\times \frac{72\times (72+1)}{2}]=Rs(80\times 36\times 73)=Rs2,10,240$
$\therefore$ Interest = $Rs\left(\frac{2,10,240\times 6\times 1}{100\times 12}\right)=Rs1051.20$
Total amount deposited = $Rs(80\times 72)$
= Rs 5760
$\therefore$ Maturity amount = Rs (5760 + 1051.20)
= Rs 6811.20