Question

Mr. Raj deposited Rs 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. Rs 12,410
• B. Rs 10,500
• C. Rs. 10,120
• D. Rs 7,200

Answer 1

The correct option is C

Rs. 10,120

Given that Recurring deposit per month = Rs 800

Period = 12 months

Rate of interest = 10%

Money deposited = Monthly installment x No. of months = 800 12 = Rs 9600---- (1)

Total principal for 1 month = $\frac{800\times 12\times (12+1)}{2}$ = Rs. 62400

Interest = $\frac{(62400\times 10\times 1)}{(100\times 12)}$= Rs. 520 ---- (2)

Hence, Maturity Amount = (1) + (2) = Rs (9600 + 520) = Rs 10,120.

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