Question

Mr. Raj deposited ₹800 per month in a recurring account for a time period of 1 year at the rate of 10% per annum. What is the amount that he will receive at the time of maturity?

• A. ₹12,410
• B. ₹10,500
• C. ₹10,120
• D. ₹7,200

Answer 1

The correct option is C

₹10,120

Given that Recurring deposit per month = ₹800

Period = 12 months

Rate of interest = 10%

Money deposited = Monthly installment x No. of months = 800 x 12 = ₹9600

Interest = P $\times$ $\frac{n\times (n+1)}{2\times 12}$ $\times$ $\frac{r}{100}$

Interest = 800 $\times$ $\frac{12\times (12+1)}{2\times 12}$ $\times$ $\frac{10}{100}$

Maturity Amount = Money deposited + Interest

= 9600 + 520

= ₹10,120.

$\therefore$ The amount Mr. Raj gets on maturity = ₹10,120