Question

Mrs Mathew opened a Recurring Deposit Account in a certain bank and deposited ₹ 640 per month for 4.5 years. Find the maturity value of this account, if the bank pays interest at the rate of 12% per year.

• A. ₹ 44,064
• B. ₹ 34,560
• C. ₹ 9,504
• D. ₹ 44,604

Answer 1

The correct option is A

₹ 44,064

Sum per month(P) = ₹ 640

Number of months(n) = 4.5 x 12 = 54 Months

Rate of interest(r)= 12%p.a.

Total Amount Deposited = 54 x 640 = ₹ 34,560

$S.I.=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$=640\times \frac{54(54+1)}{2\times 12}\times \frac{12}{100}$
$=640\times \frac{2970}{24}\times \frac{12}{100}=₹9504$

Maturity Amount = Total Amount deposited + Interest

= ₹ 34,560 + ₹ 9504

= ₹ 44,064

Hence the Maturity Amount = ₹ 44,064