Question

Mr. Ravi opened a recurring deposit account in a bank. He deposited in the installment of Rs. 2500 per month for two years. At the time of maturity he received an amount of Rs. 67,500. Calculate the total interest earned by Mr. Ravi.

• A. Rs. 7000
• B. Rs. 7500
• C. Rs. 6500
• D. Rs. 5000

Answer 1

The correct option is B

Rs. 7500

Monthly installment = Rs. 2500 n = 24,

Amount deposited = 2500 $\times$ 24 = Rs. 60000

Maturity value = Rs. 67500

$\therefore$ Interest on his deposit = Rs. (67500 – 60000) = Rs. 7500