Question

Mrs. Jhaluka deposits ₹1000 every month in a recurring deposit account for a time period of 3 years at 8% interest per annum. What is the Maturity Amount?

• A. ₹20,440
• B. ₹30,660
• C. ₹40,440
• D. ₹54,000

Answer 1

The correct option is C

₹40,440

Monthly installment = ₹1000

Number of Months = 3 x 12 = 36 Months

Amount deposited = 1000 $\times$ 36 = ₹ 36000

Rate of interest = 8 %

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

= 1000 $\times$ $\frac{36\times (36+1)}{2\times 12}$ $\times$ $\frac{8}{100}$

Interest = ₹4440

Maturity Value = Amount deposited + Interest

Amount on maturity = ₹ (36000 + 4440) = ₹40,440